The initial public offering subscription of South Bangla Agriculture & Commerce Bank (SBAC) hit 14 times high.
Investors applied for the bank’s initial public offering (IPO) from July 5 till July 12, 2021. Shares of the bank will be allotted proportionally to subscribers based on the pro-rata system on Thursday.
According to the Dhaka Stock Exchange, the bank will issue 10 crore shares at the face value of Tk 10 each. Through this issue, the bank will collect Tk 100 crore from the capital market.
The bank received a total IPO application worth Tk 1,391.44 crore against 10-crore shares, which was oversubscribed by 13.91 times higher.
The bank will raise money from the capital market to buy government securities and spend on IPO costs.
Mosleh Uddin Ahmed, Managing Director and Chief Executive Officer of SBAC Bank said, “First of all, I would like to thank the investors. Their response is overwhelming amid this strict lockdown period.”
“The confidence which has been shown by investors in our bank has increased our accountability and responsibilities. The board of directors and the managing authority of our bank are committed to providing appropriate compensation,” he added.
According to the audited financial statements of the bank as of September 30, 2020, the company’s net asset value stood at Tk 13.18. In the first 9 months of the year, the bank’s earnings per share was Tk 0.94.
ICB Capital Management Limited is acting as the issue manager of the bank in the IPO.
