The initial public offering (IPO) subscription of three companies, including a private commercial bank, will commence in December, officials said.
The companies are Union Bank, Union Insurance Company and BD Thai Food & Beverage. These three companies will raise an aggregate amount of over Tk 4.62 billion from the public under the fixed price method.
Union Bank is set to raise Tk 4.28 billion from the public, which will be the largest IPO in the banking sector. Among all sectors, Union Bank's IPO is the fourth largest after Robi Axiata (Tk 5.23 billion), Grameenphone (Tk 4.86 billion) and MJL Bangladesh (Tk 4.60 billion).
Union Insurance will raise Tk 193.60 million and BD Thai Food & Beverage will collect Tk 150 million from the public.
The Bangladesh Securities and Exchange Commission (BSEC) has allowed these companies to disburse 15 per cent of IPO shares to their employees with a lock-in period for two years.
Union Insurance: The IPO subscription of Union Insurance through the electronic subscription system of the stock exchanges will begin December 15 and continue until December 22.
The securities regulator approved the general insurer's IPO proposal on June 23 to raise Tk 193.60 million by issuing over 19.36 million ordinary shares at an offer price of Tk 10 per share.
Minimum required investment for the general public will be Tk 20,000 in matured listed securities at market price as of December 7.
Minimum and maximum amount allowed for subscription for the general public is Tk 10,000.
Each Eligible Investor (EI) who intends to submit applications through the electronic subscription system (ESS) 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 at market price in listed securities.
The IPO proceeds will be invested in fixed deposit receipts (FDR), stock market investment, purchase of a floor space and IPO related expenses.
According to the financial statements, ended on December 31, 2020, the company's net asset value (NAV) per share stood at Tk 17.39 while the basic earnings per share (EPS) stood at Tk 2.14.
Sonar Bangla Capital Management Ltd is acting as the issue manager for the company's IPO process.
BD Thai Food: The IPO subscription of BD Thai Food & Beverage will start on December 23 and continue until December 29.
The stock market regulator approved the company's IPO proposal on October 3 to raise Tk 150 million under the fixed price method by issuing 15 million ordinary shares.
The company will utilise the IPO proceeds for purchasing machinery and equipment, land development, building construction and bearing the IPO expenses.
According to the financial statement ended on June 30, 2020, the company's net asset value (NAV) per share (NAV without revaluation) was Tk 12.82 and (NAV with revaluation) of Tk 14.23, the weighted average earnings per share (EPS) for the last five years stood at Tk 0.63.
The company's paid-up capital is Tk 665 million. Lock-in period for all existing shareholders for three years from the first trading date in the exchanges.
Besides, the company's sponsor-directors will not be entitled to get dividend until the company's EPS reaches Tk 1.0 or above, as per the BSEC approval.
The BSEC has also decided to allow the company to disburse 15 per cent of IPO shares to its employees and lock-in period for two years.
Unicap Investment and BLI Capital are jointly acting as the issue manager for the company's IPO process.
Union Bank: The IPO subscription of Union Bank will commence on December 26 and continue until December 30.
The BSEC allowed the bank to raise Tk 4.28 billion by issuing 428 million ordinary shares at an offer price of Tk 10 each from the capital market under the fixed price method.
The fourth generation private commercial bank will utilise the IPO proceeds for purchasing government securities, investing in stock market, and financing in SME and other projects.
The company has reported net asset value (NAV) per share of Tk 16.38 (without revaluation reserve) and earnings per share (EPS) of Tk 1.77 for the year ended on December 31, 2020. The weighted average EPS of five years was Tk 1.82.
Prime Bank Investment and BRAC EPL Investments are the issue managers of Union Bank's IPO. Presently, 32 banks are listed with the DSE.