A general investor will get a minimum of 60 initial public offerings (IPOs) shares of South Bangla Agriculture & Commerce Bank (SBAC) against the application of Tk 10,000.
The Dhaka Stock Exchange (DSE) on Thursday allotted the IPO shares of the bank under the newly introduced pro-rata basis at an event held at the DSE office at Nikunja.
The IPO shares distribution on a pro-rata basis allows every applicant to receive primary shares.
The general investors, who have applied for Tk 10,000, will get a minimum of 60 IPO shares of the bank. Besides, affected investors will get a minimum of 78 IPO shares and non-residential Bangladeshis (NRBs) will get a minimum of 110 shares of the bank against an application for Tk 10,000, Md Shafiqur Rahman, deputy general manager of the DSE confirmed the FE.
The IPO subscription was held between July 5 and July 12, aiming to raise Tk 1.0 billion from the capital market under the fixed price method.
The bank’s IPO oversubscribed almost 14 times as the bank received a total application worth Tk 13.91 billion against the IPO shares worth Tk 1.0 billion.
The general investors have applied for shares worth Tk 6.61 billion, affected small investors of Tk 1.31 billion, non-resident Bangladeshis of Tk 917 million and eligible investors worth Tk 5.07 billion.
Managing Director and CEO of the bank, Mosleh Uddin Ahmed said, “I would like to thank and appreciate the investors. They have responded remarkably to our offering during this strict lockdown due to the Covid-19 pandemic.
“The confidence they have shown in our bank has further enhanced our accountability and responsibilities in our future work plans.”
The bank 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 2013, issued 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 and earnings per share (EPS) were Tk 13.18 and Tk 0.94 respectively for the nine months period that ended on September 30, 2020. Its weighted average EPS for the last five years was Tk 1.24.
The bank’s authorised capital is Tk 10 billion and 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.
South Bangla Agriculture & Commerce Bank will be the 32nd listed bank on the Dhaka bourse.