The subscription for units of CAPM IBBL Islamic Mutual Fund (CAPMIBBLMF) by the eligible investors through electronic subscription system under fixed price method begin today (Sunday) at 10:00am and continue till 5:30pm of December 18, 2017.
The closed-end mutual fund will raise Tk 300 million through initial public offering (IPO).
“The required 100 per cent of subscribed amount shall be paid through Mutual Trust Bank (Account Name: Dhaka Stock Exchange, Account No. 0012-0320001838) in between 10:00am of December 10, 2017 to 2:00pm of December 18, 2017,” said a statement posted on the Dhaka bourse’s website on Sunday.
It is mentionable that undersubscribed portion (if any) of general public category shall be fulfilled by oversubscribed portion (if any) of eligible investors category, it said.
The securities regulator -- Bangladesh Securities & Exchange Commission (BSEC) approved the draft prospectus of CAPM IBBL Islamic Mutual Fund on September 26.
The size of CAPM IBBL Islamic Mutual Fund will be Tk 800 million. Of the fund’s total size, Tk 500 million financed by Islami Bank Bangladesh, the sponsor of the mutual fund.
Remaining Tk 300 million will be collected through initial public offering (IPO), according to the prospectus.
The Shariah based closed-end mutual fund with definite life & limited size which might be increased through complying securities & exchange commission (mutual fund) rules 2001.
A market lot is 500 units with a face value of Tk 10 per unit and an investor needs Tk 5,000 to apply for per lot.
The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO are US$ 62 or GBP 46.83 or EUR 52.74, according to Dhaka Stock Exchange (DSE).
The objective of the fund is to generate attractive risk adjusted returns and disburse competitive dividend to the unit holders in the long-run by investing in a diverse arena of Sharia'a compliant eligible equity and debt securities of Bangladesh capital and money market.
Capital & Asset Portfolio Management Company is the fund manager, while Investment Corporation of Bangladesh (ICB) is the trustee and custodian of the CAPM IBBL Islamic Mutual Fund.
A mutual fund is a professionally managed collective investment scheme that pools money from many investors and invests it in stocks, bonds and short-term money market instruments.
Presently, 36 closed-end mutual funds are listed on the Dhaka Stock Exchange (DSE).