SINGAPORE: Electricity producer Summit Power International plans to list on the Singapore Exchange Ltd (SGX) by April, what is likely the first company from Bangladesh to offer shares in the city-state, as it seeks to raise funds to invest in assets across Asia.
Bangladesh’s economic growth soared by 7.28% in the financial year that ended in June 2017 and its population is expected to climb to over 185 million people by 2030.
Together with Pakistan and India, the country is making South Asia a hotspot for liquefied natural gas (LNG) demand, attracting investment from gas producers and power plant builders after years of the country being considered an energy backwater.
“The stock market in Bangladesh is small and our financial demands are much larger ... Singapore seems to be becoming a global financial market, so it looks like a good place to list in,” Muhammed Aziz Khan, the chairman of Summit Group, the conglomerate that owns Summit Power, told Reuters in an interview in Singapore.
SGX has granted Summit Power eligibility to list on the exchange, Khan said. SGX declined to confirm the company’s eligibility since the exchange does not typically comment on potential listings, a spokeswoman said.
Summit Power is likely to be the first Bangladeshi firm to list in Singapore; however, the SGX declined to comment.
The company has appointed Citigroup, DBS and UBS as global coordinators, Khan said.
However, Khan declined to give a value of the initial public offering (IPO), saying the information was confidential.
Summit Power has about a 13% share of Bangladesh’s electricity generation market, operating 15 power plants with a combined capacity of about 1,200 (MW). — Reuters