The initial public offering (IPO) subscription of South Bangla Agriculture & Commerce Bank (SBAC) will begin on 5 July, aiming to raise Tk 1.0 billion under the fixed price method.
The private lender's IPO subscription will be continued until July 11, officials said.
The minimum required investment for general public will be Tk 20,000 only as on June 24 in matured listed securities at market price, according to a filing with the Dhaka Stock Exchange (DSE) on Thursday.
The minimum and maximum amount allowed for subscription for general public would be Tk 10,000 (or its multiples) and Tk 50,000 respectively.
Each Eligible Investor (EI) who intends to submit application shall maintain a minimum investment of Tk 5.0 million for approved pension funds, recognised provident funds and approved gratuity funds and other Els of Tk 10 million only at market price in listed securities as on June 24.
South Bangla Agriculture & Commerce Bank is the third company, whose IPO shares will be allotted under the newly introduced pro-rata basis instead of lottery system.
The IPO shares distribution on pro-rata basis allows every general investors participating in the subscription will receive primary shares.
The private sector lender received consent from the Bangladesh Securities and Exchange Commission (BSEC) on May 9 to raise Tk 1.0 billion through issuing IPO shares.
SBAC, which began commercial operations in Bangladesh on February 20, 2013, will issue 100 million ordinary shares at face value of Tk 10 each.
With the IPO proceeds, the bank will buy government securities and meet its IPO expenses.
SBAC's net asset value (NAV) per share stood at Tk 13.18 for the period that ended on September 30, 2020. For the nine-month period, its earnings per share (EPS) were Tk 0.94.
Meanwhile, its weighted average earnings per share for the last five years were Tk 1.24.
The stock market regulator gave a condition to the bank that it would not be allowed to declare and provide dividends before listing.
The bank's authorised capital is Tk 10 billion while pre-IPO paid-up capital is Tk 6.84 billion, which will stand at Tk 7.84 billion after the IPO, according to the company's prospectus.
ICB Capital Management is acting as the issue manager of the bank's IPO process.
The bank is going public due mainly to be more accountable, transparent and to comply with a regulatory requirement, said a top official of the bank.
South Bangla Agriculture & Commerce Bank will be the 32nd listed bank on the DSE.
The principal activities of the bank are to provide a comprehensive range of financial services: personal and commercial banking, trade services, cash management, treasury operations, as well as security and custodial services, according to its website.