The road show of United Power Generation and Distribution Company Limited, a private power enterprise, was held in the city on Wednesday to discover the indicative price for offloading its shares in the capital market under the book-building method.
The company had submitted its information memorandum to the DSE in the first week of March.
UPGD chairman Md Abdul Mubeen, managing director Moinuddin Hasan Rashid, chief financial officer Ebadat Hossain Bhuiyan and Lankabangla Investments chief executive officer M Shakil Islam Bhuiyan spoke on the potential of the company at the road show while representatives from Dhaka and Chittagong stock exchanges attended the programme as observers. Lankabangla is the issue manager of the UPGD.
Eligible institutional investors from different organisations who will propose the indicative price to discover the indicative price were also present on the occasion.
According to the information memorandum of the company, UPGD will offload its 3 crore ordinary shares in the capital market through IPO to raise fund for business expansion and repayment of its debt.
After the presentation by the issue manager and UPGD about the future prospects, eligible institutional investors asked several questions about the company.
An eligible institutional investor asked that if the Titas Gas Transmission and Distribution Company had failed to supply sufficient gas and if there was a clause regarding compensation if sufficient gas was not supplied.
In reply, Moinuddin Hasan Rashid said that there was no clause regarding compensation if sufficient gas was not supplied by the supplier.
However, the power plants could be run on alternative fuel if there is lack of sufficient gas, Moinuddin said in reply to another question from an eligible institutional investor.
The government has allowed several gas-based power companies to generate electricity recently, which proves that there is sufficient gas to run them, he added.
-With New Age input
