Summit Power International has opened books for the first IPO of a Bangladeshi firm in Singapore, hoping to raise USD 260m.
Summit is the largest independent power producer in Bangladesh and owns 15 operational power plants in the country which have an aggregated installed capacity of 1,201 MW. This gives it a 21 percent market share of the total private installed capacity as at Dec 31, 2017.
It is tapping the Singapore market for funds to expand to meet “the growing demand for power in Bangladesh’s under-served power market”. Three ongoing power projects undertaken by Summit are expected to nearly double its current capacity by 2021.
It also constructing a US$147 million floating storage and re-gasification unit project located in the Chittagong division in Bangladesh. When completed in 2019, the unit would be able to convert liquefied natural gas (LNG) back to natural gas at the rate of about 500 million cubic feet per day.
The company said that it intends to use the net proceeds from the offering and from the issue of the cornerstone shares to repay a US$50 million loan that matures in August this year.
Summit Power reported a profit after tax of US$84.9 million in the 12 months ended June 30, 2017, up 9.7 percent from US$77.4 million a year ago.
Revenue was up 15 percent in fiscal 2017 to US$519 million, reflecting full-year contributions from three power plants that only began its operation at various points in fiscal 2016.