Each general investor will get a minimum 792 IPO shares of Union Bank Ltd, while non-resident Bangladeshi investors will get 537 shares against application of Tk 10,000 each.
The Dhaka Stock Exchange (DSE) on Sunday formally allocated the initial public offering (IPO) shares of the bank, under the newly introduced pro-rata basis, which allows every applicant to get shares, DSE said in a statement on Sunday.
Union Bank, which received the regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on September 5 last year, raised Tk 4.28 billion by issuing 428 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
The IPO subscription of the fourth generation private commercial bank was held between December 23 and 30 in 2021.
The investors applied for 3.62 times higher applications than the initial public offering (IPO) shares offered by the bank, according to the DSE statement.
The bank will utilise the IPO proceeds for purchasing government securities, investing in the stock market, financing the SME sector and other projects and bearing the IPO expenses, according to its IPO prospectus.
The bank 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.
The bank’s post-IPO paid-up capital is more than Tk 9.86 billion and authorised capital is Tk 10 billion.
The Union Bank will not be allowed to declare any dividends, approval and disbursement for its shareholders before being listed on the bourses, according to the regulatory approval.
Prime Bank Investment Ltd and BRAC EPL Investments Ltd are jointly working as the issue managers of the Union Bank’s IPO processes.
Presently, 32 banks are listed with the DSE.