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IPO subscription of NRBC Bank to open February 3

The initial public offering (IPO) subscription of NRB Commercial Bank is set to begin on February 3, aiming to raise Tk 1.20 billion through IPO under the fixed price method.

The bank’s IPO subscription through an electronic subscription system under the fixed price method of the stock exchanges will be continued until February 9, officials said.

NRBC Bank is the first bank to be listed on the country’s stock market in 12 years.

First Security Islami Bank is the last PCB so far which was listed in 2008. NRBC Bank will be the 31st listed bank.

The stock market regulator — Bangladesh Securities and Exchange Commission (BSEC)–on November 18, last year approved the NRBC Bank’s IPO proposal to raise Tk 1.20 billion through IPO.

As per the regulatory approval, the private commercial bank will issue 120 million ordinary shares at face value of Tk 10 each. The country’s capital market is set to get a bank’s stock for the first time in 12 years.

The IPO proceeds will be used to buy government securities (Tk 1.10 billion), investment in the secondary market (Tk 60.5 million) and IPO related expenses (Tk 39.50 million).

The bank’s weighted average earnings per share for the last five years and net asset value (NAV) per share were Tk 1.55 and Tk 13.86 respectively as of June 30, 2020.

For the betterment of the stock market, the bank’s IPO subscription will be completed next February, the BSEC said while approving the IPO proposal on November 18, 2020.

The commission set a later date for the subscription following demands from investors, who said they were facing liquidity shortage because of an increase in the IPOs in recent times.

AFC Capital and Asian Tiger Capital Partners Investment is the IPO’s issue manager.

The bank’s authorised capital is Tk 10 billion while its pre-IPO paid-up capital is Tk 5.82 billion.

NRBC Bank was established on 20 February, 2013 and started operating on 2 April the same year. The bank has 75 branches and more than 583 agent banking partners across the country.

UCB AML First MF: Subscription of UCB AML First Mutual Fund, an open-end mutual fund, will open on January 10 which will be continued until February 23.

The initial size of the mutual fund is Tk 200 million. Of which, the sponsor will contribute Tk 20 million and the remaining Tk 180 million will be collected by selling units to the general investors at a face value of Tk10 each.

Sandhani Life Insurance Company is the trustee and Brac Bank is the custodian of the fund while UCB Asset Management is the sponsor and asset manager.

Bangladesh Securities and Exchange Commission (BSEC) approved the draft prospectus of UCB AML First Mutual Fund on December 2, 2020.

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