Energypac awaits indicative prices for IPO

Energypac Power Generation will obtain indicative prices for its shares tomorrow, as the company completed its roadshow on Saturday as part of an initial public offering to raise funds for business expansion.The roadshow was mandatory, as the power company is using the book-building method for its IPO.The company presented key factors such as nature of the business, financial performance, future growth and plans and information about the owners before the institutional investors, who will now set the indicative price and bid for shares.Energypac Power Generation will float 4.54 crore ordinary shares of Tk 10 each. Of the shares, 1.81 crore have been kept for eligible institutional investors, 68.10 lakh for mutual funds, 45.40 lakh for non-resident Bangladeshis and 1.59 crore for the general public.The company will use the IPO proceedings to set up an LPG bottling and distribution plant, establish condensate fractionate plant and repay bank loans, said Rezwanul Kabeer, director of Energypac. He presented the company’s profile and prospects at the roadshow.He said a mere 60 percent of the population has access to electricity and the per capita electricity consumption in Bangladesh is only 292 kwh, which is one of the lowest among other developing countries.“So demand for electricity is expected to increase along with economic growth,” he said, adding that new electricity generation plants with a capacity of about 9,500 MW will be installed in between 2013 and 2016.As of June, the company’s paid-up capital was Tk 115.33 crore, earnings per share were Tk 5.48 and net asset value per share was Tk 27.89.Founded in 1995, Energypac is a leading power engineering company in Bangladesh and is engaged in several diversified businesses including supplying standby and base-load generators, JAC brand automobiles and construction machinery.The company is also engaged in installing power plants under Engineering, Procurement and Construction (EPC) contracts, operating and installing CNG refuelling stations and conversion kits, and installing and maintaining power plants.IDLC Investments is the issue manager for Energypac IPO.