Centering a recent initial public offering (IPO) subscription of NRBC Bank, a large number of small and general investors invested in the capital market.
General investors have submitted applications for NRBC Bank’s IPO which is 10.86 times higher than the actual capacity, said Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) at a press release on Tuesday.A seven-day IPO subscription of the bank began on February 3, aiming to raise Tk 1.20 billion through IPO under the fixed price method.
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.
NRBC Bank sources said that out of 120 million shares, 60 percent will be allotted among the general investors and remaining 40 percent will be allotted to suitable institutional investors.
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).
NRBC Bank Chairman SM Parvez Tamal said, “After a decade a bank got registration in the stock market, we have received huge response from the investors. It is a reflection of investors’ confidence to the bank. We will maintain their trust and credibility.”He thanked Bangladesh Bank, BSEC, DSE and CSE for their cooperation in the registration process.
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.
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.