Second largest IPO after Grameenphone
Mobil Jamuna Bangladesh Ltd is set to make the second largest public offering, after Grameenphone, in the country’s stockmarket, as the regulator gave a green light to the public-private energy venture yesterday.
The company will float four crore ordinary shares of Tk 10 each using the book building method, a modern pricing mechanism for initial public offering (IPO), said an official of the Securities and Exchange Commission, which approved the IPO at a meeting presided over by Chairman Ziaul Haque Khondker.
With the IPO proceeds, Mobil Jamuna will set up a liquefied petroleum unit in Khulna and buy lands to set up its own corporate office and a crude oil refinery unit.
The indicative price for each share of the company has already been fixed at Tk 127. Now under book building method, the eligible institutions will be allowed to quote 20 percent up or down from the indicative price for each share. It means investors will be allowed to offer prices between Tk 101.60 and Tk 152.40.
Prime Finance and Investment
Limited is the issue manager of the Mobil Jamuna IPO.
State-run Jamuna Oil Company has 25 percent stakes in Mobil Jamuna, while a private local company EC Securities Limited, an investment firm of East Coast Group, owns 74.98 percent of the company, paid-up capital of which is now Tk 143 crore.
Mobil Jamuna, which controls nearly 26 percent share in the domestic oil market and has pioneered exporting lubricants and its shipment, has been steadily growing since 2007. Last year, exports grew 58 percent after picking at 453 percent in 2008.
Incorporated as a private limited company in 1998, the company began its commercial journey in 1999. It started producing advanced lubricants products in 2003.
Of around 240 energy and power companies operating in Bangladesh, only 11 are listed on bourses.
BOC Bangladesh, Padma Oil, Eastern Lubricant, BD Welding, Summit Power, Desco, Power Grid, Jamuna Oil, Meghna Petroleum, Titas Gas and Khulna Power are among the listed energy companies.
Market capitalisation of the energy companies on the Dhaka Stock Exchange reached over Tk 30,000 crore, accounting for around 13 percent of the total market capitalisation.
At yesterday’s meeting, the SEC official said, the commission also approved rights offer of two listed companies — Exim Bank and Agni Systems.
Exim Bank will offer one rights share against two existing shares at a price of Tk 10 each, while Agni Systems will offer one rights share against two existing shares at a price of Tk 20 each, including Tk 10 as premium.
