South Bangla Agriculture & Commerce Bank (SBAC) will make its shares trading debut on Dhaka Stock Exchange and Chittagong Stock Exchange tomorrow (Wednesday) under the settlement category “N”.
The bank will make its trading debut as the 32nd listed bank on the Dhaka bourse. The DSE trading code for the bank is “SBACBANK” and the company code is 11151, according to an official disclosure on Tuesday.
The private commercial bank received consent from the Bangladesh Securities and Exchange Commission (BSEC) on May 9 to raise Tk 1.0 billion through issuing IPO shares under the fixed price method.
The initial public offering (IPO) subscription of the bank was held between July 5 and July 12.
The bank received a total IPO application worth Tk 13.91 billion against Tk 1.0 billion of IPO shares, which was oversubscribed by 13.91 times.
South Bangla Bank is the third company, whose IPO shares are allotted on the newly introduced pro-rata basis instead of a lottery system. The shares distribution on a pro-rata basis allows every general investor participating in the subscription to receive primary shares.
SBAC, which began commercial operations in Bangladesh on February 20, 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 stood at Tk 13.18 for the period that ended on September 30, 2020. For the nine-month period, its earning per share (EPS) was Tk 0.94.
Meanwhile, its weighted average earning per share for the last five years was Tk 1.24.
The bank’s authorised capital is Tk 10 billion while post-IPO paid-up capital is Tk 7.84 billion.
ICB Capital Management is acting as the issue manager of the bank’s IPO process.
The principal activities of the bank are to provide a comprehensive range of financial services: personal and commercial banking, trade services, cash management, treasury operations, as well as security and custody services, according to its website.