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Global Islami Bank Limited’s shares recorded a dismal trading debut as its share price dropped below the face value at the Dhaka Stock Exchange (DSE) on Wednesday.
Investors showed less than expected interest towards the bank’s stock which was a rare episode in the country’s capital market history.
It is seen almost all times in Bangladesh that a company makes a flying stock trading debut riding on the investors’ huge interest in buying a new company’s stocks for booking quick gains.
The fourth-generation Shariah bank’s share price fell 10 per cent or Tk 1 per share to close the trading session at Tk 9 on the DSE trading floor.
Its shares witnessed a total of 11,817 trades throughout the session with 23,533,661 shares changing hands.
Listed in the ‘N’ category, Global Islami Bank’s DSE trading code is ‘GIB’, and its company code is 11153.
With the initial public offering (IPO), the company raised a fund worth Tk 425 crore from the capital market under the fixed price method.
The bank offloaded 42.5 crore ordinary shares at a face value of Tk 10 each to raise the fund.
The company would utilise the fund by investing in SME businesses, government securities, the stock market as well as meet the IPO expenses.
According to the unaudited financial statements, the bank posted Tk 34 crore in net profit in January-September of 2022 against Tk 48.36 crore in the same period last year.
Its basic earnings per share (EPS) stood at Tk 0.66 for January-September this year which was Tk 0.94 for the same period last year.
The post-IPO basic EPS for July-September 2022, however, would be Tk 0.36.
Furthermore, its profit after tax stood Tk 80.73 crore with a basic EPS of Tk 1.57 for the nine months ending in September 2022.
Global Islami Bank, formerly known as NRB Global Bank, is an entirely Islamic Shariah-based financial institution that commenced its operations in 2013.
The newly listed bank has a paid-up capital of Tk 940 crore.
LankaBangla Investments Ltd and Prime Bank Investment Ltd are the issue managers for the IPO process.
