Global Islami Bank wants to go public for Tk425cr 

Global Islami Bank Ltd, a fourth-generation commercial bank, has applied to the securities regulator to raise Tk425 crore through an initial public offering (IPO).

The bank applied to the Bangladesh Securities and Exchange Commission (BSEC) last week to issue shares at a face value of Tk10 under the fixed price method.  

The private sector lender will invest Tk100 crore in small and medium enterprises (SMEs) considering the ample growth opportunity and mounting financing needs of the SMEs.

Besides, the bank will also invest Tk268.5 crore in government securities and bonds as secured investment.

Prime Bank Investment Limited and LankaBangla Investments Limited will be the issue managers for the Global Islami Bank's IPO.

According to sources, the bank made a profit of Tk98.54 crore after tax and provisions, while its earnings per share (EPS) stood at Tk1.91 till 30 September 2021.

During the period, its net investment income was Tk366 crore.

The return on equity of the bank was 13.95%, while its return on assets was 0.79% till September 2021.

The bank's classified investment was 2.15% of its total investment as of 30 September 2021.

Global Islami Bank, a full-fledged Islamic Shariah-based commercial bank, started operation on 23 October 2013.

Its authorised capital is Tk2,000 crore and its paid-up capital is Tk515.42 crore.

According to its prospectus, the bank is operating 86 branches, 72 sub-branches, and 91 ATM Booths across the country.

As per the licensing conditions, the bank was supposed to go public within three years of starting operation. When the bank failed to meet the deadline, it got a time extension till February 2022.

Md Manjur Hossain, secretary of the bank, said it has taken the initiative to offload shares according to a prior plan to comply with the Bangladesh bank rules.

Last year, the commission approved a Tk100 crore IPO for South Bangla Agriculture and Commerce (SBAC) Bank and Tk428 crore IPO for Union Bank.