It will invest the Tk150 crore IPO fund mainly to expand its LPG business
More than 67,000 general investors have been selected to avail Energypac Power Generation Limited's primary shares, according to company officials.
Earlier this week, the company drew its lottery to pick among subscribers who expressed interest in buying more than 10 times the shares the company had offered to mass investors in its Tk150 crore initial public offering (IPO) under the book building method.
Initially, eligible institutional investors set Tk35 per share as the cut-off price of Energypac primary shares and general investors got Tk31 as the discounted price for their shares.
The book building method of IPO currently needs a company to float an equal number of shares among institutions and the general public.
Energypac will invest its IPO fund of Tk150 crore mainly to expand its liquefied petroleum gas (LPG) business. It will spend a minor portion of the fund on repaying some expensive bank loans and also meeting the cost of the IPO process.
At the end of the fiscal year 2019-20, the company posted consolidated revenue of Tk1,097 crore, which was 24% lower compared to the previous fiscal year.
However, its net profit grew by 21% to Tk58.18 crore and earnings per share (EPS) stood at Tk3.83 in the last fiscal year.
According to a Bangladesh Securities and Exchange Commission statement issued last October, Energypac's weighted average EPS for five consecutive fiscal years until the end of June 2019 stood at Tk2.21.
In the statement, the regulatory body approved the public subscription of the company.
Energypac has diversified its business through standby and base-load generators, JAC brand commercial vehicles, John Deere brand agro-based machinery, JCB brand construction machinery and material handling equipment, and operating CNG stations along with providing aftermarket service.
The company is also engaged in engineering, procurement, and construction (EPC) contracts; operating and installing CNG refuelling stations and conversion kits; and providing installation and maintenance services of power plants.
Energypac has established the Steelpac brand for designing, manufacturing, and erecting pre-engineered steel buildings. It also provides complete steel construction solutions for industrial, commercial, and residential steel buildings.
It entered the LPG market under the brand name G-Gas. Its LPG bottling and distribution plant is located near Mongla port.
The company further plans to assemble and manufacture ATS, canopies, LT panels, genset trailers, control panels, elevators, etc.
Energypac signed a contract with Sylhet Gas Fields Limited to build a condensate fractionation plant in Bahubal upazila of Habiganj and to avail the associated facilities. It is a $28 million deal and Energypac's share in the consortium is 52.40%.
The company also signed a Tk80 crore captive power plant project deal with Essential Drugs Company Limited.