South Bangla Agriculture and Commerce Bank’s (SBAC) initial public offering (IPO) subscription will start on July 5, with the goal to raise Tk 1 billion under the fixed price method.
Officials have stated that the private lender’s IPO subscription will be continued until July 11.
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 are defined as the distribution on a pro-rata basis that allows every general investor participating in the subscription to receive primary shares.
Tk 20,000 is the minimum required investment for the general public as of June 24 is matured listed securities at market price.
Tk 10,000 and Tk 50,000 is the minimum and maximum amount allowed for the general public for the subscription respectively.
Each eligible investor (EI) who has the intention to submit an application shall maintain at least an investment of Tk 5 million for approved person funds, recognised provident funds and approved gratuity funds and other EIs of Tk 10 million only at market price in listed securities as of June 24.
Consent has been received by the private sector from the Bangladesh Securities and Exchange Commission (BSEC) on May 9 to raise Tk 1 billion via issuing IPO shares.
With its beginning its commercial operations in Bangladesh on February 20, 2013, SBAC will issue 100 million ordinary shares at face value of Tk 10 each.
The bank, with the proceeds from the IPO, will purchase 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.
On the other hand, the weighted average earning per share for the previous 5 years was Tk 1.24.
A condition was given by BSEC 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.
A top official of the bank stated that the lender is going public mainly because they want to be more accountable, transparent, and comply with regulatory requirements.
South Bangla Agriculture & Commerce Bank will be the 32nd listed bank on the DSE.
Based on the bank’s website, 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.