Midland Bank Ltd, which is set to commence IPO subscription in the middle of this month, offers 7.14 per cent shares to its employees under the employees share purchase plan (ESPP).
Midland Bank is the first commercial bank that offers initial public offering (IPO) shares to its employees, the bank said in a statement issued on Thursday.
The fourth-generation private commercial bank will raise Tk 700 million by issuing 70 million ordinary shares between February 16 and February 23 under the fixed-price method.
Of the total shares, 5 million will be reserved for the employees of the bank and the remaining 65 million will be distributed among the eligible investors (EIs) and general public as per the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
Midland Bank will use the IPO funds to invest in the government securities, secondary market and IPO expenses.
The minimum required investment for the general public is Tk 50,000 and for non-resident Bangladeshis Tk 100,000.
Each eligible investor, who intends to submit an application, shall maintain a minimum investment of Tk 15 million for approved pension funds, recognised provident funds and approved gratuity funds while other eligible investors should have investment of at least Tk 30 million each in listed securities to qualify for IPO shares.
The private lender's total loans and advances until 31 December 2021 stood at Tk 45,867.48 million whereas the total deposit was Tk 50,730.04 million, as per the IPO prospectus.
The pre-IPO paid-up capital of the bank is Tk 5,696.70 million which will stand at Tk 6,396.70 million after the IPO.
The sponsors-directors of the issuer shall hold 78.63 per cent shares post-IPO. The ratio of non-performing loan and capital adequacy ratio were 3.17 per cent and 15.87 per cent respectively for the year ended 31 December 2021.
As per the financial statements for the year ended on December 31, 2021, its net asset value per share (without revaluation) and earnings per share are Tk 13 and Tk 0.90 respectively. The five years weighted average EPS was Tk 1.07.
Midland Bank will be the 35th listed bank in the country's capital market. LankaBangla Investments is acting as the issue manager.
The bank was incorporated on 20 March 2013 under the Companies Act, 1994 as a Public Limited Company and the bank started its commercial operation on 20 June 2013 with a corporate slogan ‘Bank for inclusive growth'.
Mrs Nilufer Zafarullah has been the bank's chairman since September 2018 while Mr Md Shamsuzzaman is working as the vice chairman.
Midland Bank is a management-run bank, led by its managing director and CEO Mr Md Ahsan-uz Zaman. Shortly after the inception of Midland Bank, Mr Zaman joined the institution in 2014.
Prior to joining MDB, Mr Zaman had worked for Mutual Trust Bank (MTB) as an additional managing director with responsibility for business catering to companies and individuals, International Trade Services, Information Technology and Alternative Delivery Channels.
Before joining MTB, Mr Ahsan-uz Zaman worked for Bank of America in New York, at its Global Wealth and Investment Management Division with responsibility for business across a wide assigned territory.
Mr Zaman has diversified banking experience, having worked at home and abroad. In his career, he had served JP Morgan Chase Bank, Morgan Stanley, BNP Paribas and ANZ Grindlays Bank, where he joined as a management trainee in Dhaka in 1982.
Mr Ahsan-uz Zaman completed his MBA from the Institute of Business Administration (IBA) of University of Dhaka and is an accredited mediator.