The securities regulator on Sunday approved the IPO (initial public offering) proposal of Union Bank, a fourth-generation private commercial bank, which will raise a capital worth Tk 4.28 billion.
The approval came at a meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC).
At the meeting, the securities regulator also approved three proposals of issuing bond and qualified investor offer (QIO) of Krishibid Feed which will raise Tk 220 million through the exchange's SME board.
As per the BSEC approval, Union Bank will issue 428 million ordinary shares of Tk 10 each under the fixed-price method.
The company will utilise the IPO funds worth Tk 4.28 billion for purchasing government securities, investing in stock market, and financing in SME and other projects.
The company has reported its NAV per share of Tk 16.38 (without revaluation reserve) and EPS of Tk 1.77 for the year ended on December 31, 2020. The weighted average of EPS of five years has stood at Tk 1.82.
Prime Bank Investment and BRAC EPL Investments are the issue managers of Union Bank.
Presently, the number of listed banks is 32 and it will stand at 33 after the listing of Union Bank.
Krishibid Feed will raise Tk 220 million through the SME board for constructing building, purchasing machinery, and repaying bank loans, among others.
The company's shares will be issued to eligible investors only through the QIO.
At Sunday's meeting, the securities regulator approved three separate proposals of issuing bonds by LankaBangla Finance, Shahjalal Islami Bank, and Islami Bank Bangladesh.
LankaBangla Finance will raise Tk 3.0 will issuing non-convertible zero coupon bond.
Shahjalal Islami Bank will raise Tk 5.0 billion issuing basel-III compliant perpetual bond.
Islami Bank Bank will raise Tk 8.0 billion issuing basel-III compliant 2nd perpetual bond.