"Being a capital-intensive sector, power generation needs more funds, but it is not an easy task to pour huge some into the sector when there is a mammoth systems loss there," Iqbal Hassan Mahmud said.

"Enlistment of the power companies will help the sector get liquidity support for investing more in power generation," he said, adding that it will also bring accountability in the sector as well as help the capital market become more vibrant.

The state minister was speaking at a press briefing on share offloading of Desco and the PGCB organised by the Dhaka Stock Exchange (DSE) in the capital.

Citing donors' reform conditions regarding power sector, he said they will not provide funds for the sector unless there is any reform.

Power Division Secretary ANH Akhter Hossain, Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi, DSE President Abdullah Bokhari and CEO Salahuddin Ahmed Khan also spoke at the press briefing.

Meanwhile, the country's bourses have agreed in principle to enlist the two power division entities of the government with the stock exchanges.

Desco will join the capital market within first week of the next month by releasing around 3.2 million shares worth Tk 317.80 million while the PGCB will join the market within the second half of June by releasing around 9.1 million shares worth Tk 910.89 million.

The face value of each share of Desco is fixed at Tk 100 while that of PGCB's share is fixed at Tk 1000 each.

The shares of those companies will be offloaded through direct listing rules with both the DSE and Chittagong Stock Exchange (CSE). Desco and the PGCB are the first companies to be listed with the bourses under direct listing rules.

Ten per cent of the offloaded shares will be released within the first month from the first trading date to avoid possible devaluation of the shares.

The initiative of offloading the shares of Desco and the PGCB is a part of the government's broader goal for giving all the power generation, supply and transmission entities a corporate shape.

The PGCB is engaged in transmitting power across the country while Desco is responsible for supplying electricity to the capital's Gulshan, Mirpur and Uttara zones.

Credit Rating Information and Services Ltd (CRISL), a credit rating company, has rated the PGCB as A and Desco as A+.

The PGCB and Desco have achieved A and A+ ratings from Credit Rating Information and Services Ltd (CRISL), a credit rating company.

The net asset value of the PGCB in 2004-05 stood at Tk 35,944.57 million while the earning per share was Tk 42.07. On the other hand, the total asset value of Desco in the same period stood at Tk 10,304.55 million while earning per share was Tk 40.14.

During 2004-05 period, operating revenue of the PGCB was Tk 4,683.35 million while the operating profit of Desco was Tk 1,211.61 million in the same period.

Talking about the trading system of Desco and the PGCB shares under direct listing rules, Salahuddin Ahmed Khan said the Investment Corporation of Bangladesh (ICB), issue manager of the PGCB and Desco, will offload shares on the first two days of trading for two hours a day. Normal trading will start on the fourth day while there will be no trading on the third day.

Prospective investors will offer prices for buying shares in the first 15 minutes of the first trading day. Based on the offered price, the ICB will fix a price of each share and thus offloading of shares will start. However, there will be scope for price modification depending on demand side.

Buyers will be allowed to place a maximum order for 1,000 shares at a time on the first day. The restriction on purchasing shares over 1,000 will be withdrawn on the second day and buyers will be allowed to place orders based on market lot and odd lot, Salahuddin said.