United Power Generation and Distribution Company is set to make its share trading debut on the Dhaka and Chittagong stock exchanges on Sunday.
The company, which raised Tk 237.6 crore through the initial public offering, will be the 18th firm to be listed in the fuel and power sector that accounts for around 12 percent of the premier bourse's total market capitalisation.
The power generation company floated 3.3 crore ordinary shares of Tk 10 each at an offer price of Tk 72, which was set through institutional bidding in May last year.
LankaBangla Investments managed the IPO, the proceeds of which will be used for United Power's long-term debts and meet the demand for working capital.
United Power got the consent from the Bangladesh Securities and Exchange Commission on November 11 last year.
The book-building method will be used to raise the capital, which is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.
The price of an IPO share is determined through automated bidding joined by financial institutions. The shares are then opened for the IPO participants at the bidding cut-off price.
The method was suspended and then revised by the regulator following the 2011 market crash.
As of September 2014, United Power's net profit was Tk 175.78 crore and basic earnings per share (EPS) Tk 5.92.
However, as of September 2014, the company's post-IPO basic EPS was Tk 5.33 and net asset value per share Tk 33.81.