The initial public offering (IPO) subscription of South Bangla Agriculture & Commerce Bank (SBAC) will begin on Monday, aiming to raise Tk 1.0 billion under the fixed price method.
The private lender's IPO subscription will be continued until July 11, officials said.
South Bangla Bank is the third company, whose IPO shares will be allotted on the newly introduced pro-rata basis instead of the lottery system.
The IPO shares distribution on a pro-rata basis allows every general investor participating in the subscription will receive primary shares.
The minimum required investment for the general public is Tk 20,000 as of June 24 in matured listed securities at market price.
The minimum and maximum amount allowed for subscription for the general public is Tk 10,000 (or its multiples) and Tk 50,000 respectively.
Each eligible investor (EI) who intends to submit an application shall maintain a minimum investment of Tk 5.0 million for approved pension funds, recognised provident funds and approved gratuity funds, and other Els of Tk 10 million only at market price in listed securities as of June 24.
The private sector lender received consent from the Bangladesh Securities and Exchange Commission (BSEC) on May 9 to raise Tk 1.0 billion through issuing IPO shares.
SBAC, which began commercial operations in Bangladesh on February 20, 2013, will issue 100 million ordinary shares at face value of Tk 10 each.
With the IPO proceeds, the bank will buy government securities and meet its IPO expenses.
SBAC's net asset value (NAV) per share stood at Tk 13.18 for the period that ended on September 30, 2020. For the nine-month period, its earning per share (EPS) was Tk 0.94.
Meanwhile, its weighted average earning per share for the last five years was Tk 1.24.
The stock market regulator gave a condition to the bank that it would not be allowed to declare and provide dividends before listing.
The bank's authorised capital is Tk 10 billion while pre-IPO paid-up capital is Tk 6.84 billion, which will stand at Tk 7.84 billion after the IPO, according to the company's prospectus.
ICB Capital Management is acting as the issue manager of the bank's IPO process.
The bank is going public due mainly to be more accountable, transparent, and to comply with a regulatory requirement, said a top official of the bank.
South Bangla Agriculture & Commerce Bank will be the 32nd listed bank on the DSE.
The principal activities of the bank are to provide a comprehensive range of financial services: personal and commercial banking, trade services, cash management, treasury operations, as well as security and custodial services, according to its website.
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