Union Bank, a fourth generation private commercial bank, has moved to raise a capital above Tk 4.0 billion from the capital market.
To raise the capital, the bank will submit its IPO (initial public offering) proposal soon under the fixed price method.
Prime Bank Investment Limited (PBIL) and BRAC EPL Investments are working jointly to provide issue management services for the IPO proposal of Union Bank.
The bank on Monday signed an agreement with the issue managers, according to a release.
Mr. A.B.M. Mokammel Hoque Chowdhury, managing director at Union Bank, Khandoker Raihan Ali, COO at the PBIL, Syed Rashed Hussain, CEO at BRAC EPL Investments, other high officials of the respective organisations, were present in the signing ceremony.
The PBIL COO Khandoker Raihan Ali said they would submit the bank's IPO proposal after Eid-ul-fitr.
"The exact amount of the fund which will be raised from the capital market is yet to be finalised. The bank will raise above Tk 4.0 billion, Mr. Ali told the FE.
The paid-up capital of the Union Bank is Tk 5.59 billion whereas the authorised capital is Tk 10 billion.
The bank will submit its IPO proposal with the financial statement for the year ended on December 31, 2020.
The bank has also received consent from the central bank regarding raising capital from the capital market.
Presently, the number of listed banks is 31. After 12 years of a bank's listing, the Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of a bank namely NRB Commercial Bank on November 18, 2020. The bank raised Tk 1.20 billion under the fixed price method.
After the listing of NRB Commercial Bank, South Bangla Agricultural Bank has submitted its IPO proposal to the securities regulator.
The securities regulator has also allowed the Midland Bank to issue 3.5 million shares to its employees and those shares will also be treated as the part of the company's IPO. The bank is likely to submit its IPO proposal soon.