Energypac IPO subscription to close 13 December

The public subscription of Energypac Power Generation Ltd for its Tk150 crore Initial Public Offering (IPO) will be closed on 13 December this year.

The subscription had earlier started on 7 December.

Eligible institutional investors in their recent biddings have set the reference price for each Energypac share at Tk35.

Qualified and institutional investors are buying 50% of the IPO shares at the cut-off price.

Meanwhile, individual investors will be able to purchase the remaining shares at Tk31.50 per share after a 10% discount on the cut-off price.

The company will mainly expand and energise its Liquefied Petroleum Gas (LPG) business with the investors' money.

Energypac began its journey in 1995 as an electrical and engineering business.

Its energy and power division supplies generators and provides operations, maintenance and installation services.

The motor vehicle division of the company imports, assembles, and sells branded commercial vehicles and agro machinery.

Its LPG brand, G Gas, currently hovers between the sixth and eighth positions in terms of market share in Bangladesh's LPG market.

Meanwhile, Bangladesh Brand Forum considers G Gas as one of the top-three LPG brands in the country from a brand equity perspective.

Powerpac, the pre-engineered building and steel structure brand of the group, is also gaining market momentum.

Power, motor vehicle and LPG, which brought 70% of Energypac's Tk1,440 crore revenue last year, are the top three revenue earners for the conglomerate.

Power generation is the biggest business of Energypac in terms of revenue. The earnings of three of its power plants constituted 36.7% of the company's annual revenue. 

However, analysts are looking for higher profitability in Energypac's consolidated account.

The conglomerate's balance sheet size is over Tk3,500 crore with bank liabilities of around Tk2,000 crore. It earned a net profit of less than Tk50 crore in the last fiscal year.