The initial public offering (IPO) subscription of NRBC Bank Ltd begins today (Wednesday), aiming to raise Tk 1.20 billion through IPO under the fixed price method.
The fourth generation bank is the first private commercial bank in the last 12 years to be listed on the stock market. Earlier in 2008, First Security Islami Bank got listed with the stock market.
NRBC Bank will be the 31st listed bank in the Dhaka Stock Exchange (DSE).
The bank's IPO subscription through electronic subscription system (ESS) under the fixed price method will be continued until February 9, according to its prospectus.
A market lot consists of 500 shares and resident Bangladeshi investor needs Tk 5,000 to apply for each lot of the company's IPO shares.
Foreign currency required for NRB and foreign applicants, (per lot) of US$ 59.39 or GBP 43.77 or EUR 48.58.
Each eligible investor (EI) who intends to submit applications through the ESS of the exchange(s) shall maintain a minimum investment of Tk 10 million only at market price in listed securities as on January 26 as per the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the exchange regarding the holding of EIs in the listed securities and the exchange shall ensure compliance in this regard.
The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC) on November 18, 2020 approved the bank's IPO proposal to raise Tk 1.20 billion through IPO.
As per the regulatory approval, the private commercial bank will issue 120 million ordinary shares at face value of Tk 10 each.
With the IPO proceeds, the bank will use Tk 1.10 billion to buy government securities, Tk 60.5 million in the secondary market for buying shares and the rest for IPO related expenses.
The bank's weighted average earnings per share for the last five years and net asset value (NAV) per share were Tk 1.55 and Tk 13.86 respectively as of June 30, 2020.
The bank's authorised capital is Tk 10 billion while its pre-IPO paid-up capital is Tk 5.82 billion.
AFC Capital and Asian Tiger Capital Partners Investment is the IPO's issue manager.
The bank was established on February 20, 2013 and the bank has 83 branches across the country till 2020.
The principal activities of the Bank are banking and related activities including accepting customer deposits, lending to retail, small and medium enterprises (SMEs) and corporate customers, foreign trade business, lease financing, project financing, inter bank borrowing and lending and dealing in government securities and equity shares etc.
