Ashuganj Power Station Company Limited is going to be the first state-run firm in the country to get approval to raise Tk 1 billion (100 crore) from the stock market offloading bonds through IPO.
The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the initial public offering (IPO) of bonds. The decisions were taken at a commission meeting, presided over by Chairman M Khairul Hossain, official said.
As per the BSEC approval the bonds will be non-convertible, fully redeemable, and coupon bearing. In all 200,000 bonds will be issued for a seven-year term at a cost Tk 5,000 each.
The annual interests from the bonds will be minimum 8.5 percent and maximum 10.5 percent, payable every six months.
Ashuganj Power will spend the money on land development, civil work, primary fuel, purchase of transport, engineering and consultation services, current capital, and IPO.
This is going to be a breakthrough to offload shares of public companies in the market.
President of DSE Brokers Association of Bangladesh Shakil Rizvi has said the sale of bonds of the public company will surely increase the depth of the country's share market at a time such demands were side tracked by big government run entities.
Ashuganj Power, the largest power plant of Bangladesh with a capacity to generate 1,690 megawatt, had its net asset value per share or NAVPS Tk 265.96 in the year until June 30, 2017.