Bangladesh's Summit Power seeks to raise over US$200m in S'pore IPO
Singapore
SINGAPORE is set to have the first Bangladeshi company list on the Singapore Exchange, as electricity producer Summit Power International looks to raise more than US$200 million in an initial public offering (IPO).
The IPO prospectus that was lodged on Thursday showed Summit has attracted Asian Development Bank as a cornerstone investor.
Summit is the largest independent power producer in Bangladesh, and owns 15 operational power plants there which have an aggregated installed capacity of 1,201MW. This gives it a 21 per cent market share of the total private installed capacity as at Dec 31, 2017.
It is tapping the Singapore market for funds to expand and meet "the growing demand for power in Bangladesh's under-served power market", with about US$150 million from the proceeds going towards funding projects and working capital. Three ongoing power projects undertaken by Summit are expected to nearly double its current capacity by 2021.
Summit is also constructing a US$147 million floating storage and re-gasification unit in Bangladesh. When completed in 2019, the unit would be able to convert liquefied natural gas back to natural gas at the rate of about 500 million cubic feet per day.
The company said it intends to use the net proceeds from the offering and from the issue of the cornerstone shares to repay a US$63.9 million loan (including accrued interest) that matures in August this year.
Summit Power reported profit after tax of US$84.9 million in the 12 months ended June 30, 2017, up 9.7 per cent from US$77.4 million a year ago. Revenue was up 15 per cent in fiscal 2017 to US$519 million, reflecting full-year contributions from three power plants that only began operations at various points in fiscal 2016.
