NRBC bank’s share prices witnessed a 32 per cent rise to close at Tk 13.20 per share on the day of its stock market debut on March 22 (Monday) from the offer value of Tk 10. The minimum share price was Tk 11.90 throughout the day.
“The people and investors have confidence in the bank. We firmly believe that they will be rewarded by ensuring transparency and accountability,” said NRBC Bank Chairman SM Parvez Tamal.
A total of 32,293,705 and 820,000 shares were traded on Dhaka and Chattogram bourses respectively.
As per the bank’s latest report, a staggering 538 per cent growth in profits has been witnessed by the NRB Commercial Bank Limited in its after tax profit for the first 9 months of 2020.
Based on the unaudited financial report of the bank, its profit rose by Tk 118.85 crore during the January-September period of 2020 compared to the same period in 2019. In the meantime, the trading of the NRB Commercial Bank’s shares is scheduled to start under the ‘N’ category in the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on March 22.
The bank’s trading code is “NRBCBANK,” and the company code is 11150 in the DSE, while its scrip ID is 22034 and scrip code is “NRBCBANK” in the CSE.
An approval was received by the bank from the Bangladesh Securities and Exchange Commission (BSEC) on November 11 of 2020 to raise Tk 120 crore capital through an initial public offering (IPO) on a fixed price basis. Tk 110 crore of this fund will be utilized by the bank for government securities. Tk 6.05 crore for investing in the secondary market and Tk 3.95 crore in IPO expenses. It will issue shares at a face value of Tk 10 each. The bank’s IPO subscription was completed on 3-9 February 2021.
The general investors had applied for the bank’s shares to be worth around Tk 597.77 crore which was 8.30 times higher than the allocation. The IPO lottery of the bank was held online on March 3, 2021, to allocate its shares to the general investors.
Based on the bank’s unaudited financial report. It posted a net profit of Tk 140.91 crore in the first 9 months of 2020, while the earnings per share (EPS) was Tk 2.41. During the same period in 2019, its net profit was Tk 22.06 crore and EPS was Tk 0.37.
The bank’s net profit in the July-September quarter of 2020 was Tk 104.45 crore, while its EPS was Tk 1.79. During the same period in 2019, the bank had incurred a loss of Tk 63,000.
NRB Commercial Bank was inaugurated on February 20, 2013, and commenced their operation on April 2, 2013. Nationwide, the bank has 75 branches, 42 sub-branches, 23 BRTA collection booths, 13 land registration sub-branches, 229 land registration booths, and 583 agent banking partners. Its deposits stood at Tk 9,480 crore and its loans at Tk 7,462 crore as of 2020, according to the latest data from the bank.
Asian Tiger Capital Partners Investments Limited and AFC Capital Limited were the issue managers of the IPO.
Its principal activities include banking and other activities related to accepting customer deposits, lending to retail, small and medium-size enterprises as well as corporate customers, foreign trade business, lease financing, project financing, inter-bank borrowing and lending, plus dealing in government securities and equity shares.