Summit Power defers US$260m Singapore IPO

Ms Ayesha Aziz Khan is the managing director and CEO of Summit Power International, the largest independent power producer in Bangladesh.
Ms Ayesha Aziz Khan is the managing director and CEO of Summit Power International, the largest independent power producer in Bangladesh.PHOTO: BT

SINGAPORE (REUTERS) - Summit Power International has deferred its planned US$260 million (S$344.2 million)Singapore Exchange initial public offering, which would be the first overseas IPO from a Bangladeshi company.

"In light of recent market volatility, the company has decided not to proceed on the current IPO timeline. Summit Power International remains committed to the growth of its business, in support of the development of the Bangladesh power sector," a message sent to investors said.

"The company will reassess the situation in conjunction with key stakeholders and strategic partners and provide an update in due course."

A Summit spokesperson confirmed the tenor of the message to IFR.

Market participants said there was an overall lack of demand from institutional investors and private banking clients for non-real estate investment trust IPOs in Singapore. Summit had already compromised on the size of the deal, which it launched at US$260 million rather than the US$350 million indicated during premarketing. Shares were being marketed in a US$1.02-US$1.20 range.

The deal comprises a public offer of US$202.5 million and a cornerstone tranche of US$57.5 million that the Asian Development Bank has committed to.

Pioneer Generation, EMA Power Investment, International Finance Corp and IFC Emerging Asia Fund are the vendors of the secondary shares. There is an overallotment option of 19.7 per cent of the base offer size.

Summit Power is part of the Summit Group and owns 15 power plants in Bangladesh with a total capacity of 1,201 megawatts.

Citigroup, DBS and UBS are the joint global coordinators.

Separately, Qualitas Medical has not yet priced a planned S$100 million-S$133 million SGX IPO although books closed on April 10. CIMB and Credit Suisse are joint global coordinators on the IPO and bookrunners with CGS-CIMB, Daiwa and DBS.