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The initial public offering (IPO) subscription of Capitec Grameen Bank Growth Fund will open on September 24, aiming to raise Tk 1 billion.
The subscription of the mutual fund through the electronic subscription system will continue until October 1, according to a stock exchange filing on Thursday.
On August 14, the stock market regulator approved a draft prospectus of the Tk 2 billion growth fund, a close-ended mutual fund.
Of the total fund size, the sponsor -- Grameen Bank -- has provided 50 per cent while the remaining 50 per cent or Tk 1 billion will be collected from all kinds of investors through the IPO.
The face value of each unit is Tk 10.
The objective of the fund is to provide a lucrative dividend to unit holders by making money through capital gains and cash dividend from listed companies.
A mutual fund is a professionally-managed investment scheme usually run by an asset management company that pools money from investors and invests in stocks, bonds and other assets. Depending on the profits earned, investors are then paid back in the form of dividends.
Each eligible investor (EI), who intends to purchase units of Capitec's Growth Fund, should have a minimum investment portfolio of Tk 30 million at market price in listed securities while the minimum investment has to be Tk 15 million for approved pension funds, recognised provident funds, and approved gratuity funds as of Thursday.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the Dhaka Stock Exchange regarding the holdings of eligible and willing investors in the matured listed securities, and the exchange shall ensure the compliance in this regard.
Capitec Asset Management is acting as the asset manager while the state-run investment bank - Investment Corporation of Bangladesh is the trustee and custodian of the fund.
Presently, Capitec is managing three open-ended mutual funds and two of them secured double-digit returns in FY22.
Capitec Asset Management won the prestigious 'Independence Golden Jubilee Award-2022' from the Bangladesh Securities and Exchange Commission, securing the first position in the best asset manager category for its outstanding performance in the stock market.
Currently, 36 MFs are listed on the DSE while the number of open-ended MFs is 90.
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