Midland Bank IPO subscription opens on 16 February

The initial public offering (IPO) subscription of Midland Bank will begin on 16 February and continue till 23 February.

The Bangladesh Securities and Exchange Commission (BSEC) earlier allowed the private sector lender to issue 7 crore shares at a face value of Tk10 each to raise Tk70 crore capital from the stock market.

Of the IPO fund, the bank will invest over Tk61 crore in Treasury bonds and bills, Tk5 crore in the listed "A" category securities, and use the remaining Tk3.89 crore to meet the IPO expenses.

LankaBangla Investments Limited will be the issue manager of the bank's IPO.

The sponsor-directors of Midland Bank must jointly hold at least 30% of the company's shares, while each director must individually hold at least 2%, before the bank's stock market listing.

Also, it will appoint independent directors as per the corporate governance guidelines of the BSEC.

Incorporated in 2013, Midland Bank has emerged as a full-fledged commercial bank with a well-diversified portfolio, a strong financial base with shock absorption capability, and operational efficiency.

The planned IPO is significantly smaller in size compared to peer new-generation banks, which are raising up to five times as much money from the capital market.

Md Ahsan-uz Zaman, the bank's Managing Director and Chief Executive Officer, previously stated, "We have been operating with more than adequate capital, and the sought amount is primarily to meet regulatory requirements."

Midland Bank's paid-up capital is nearly Tk570 crore, which is set to increase to nearly Tk640 crore after the IPO.

According to the bank's financial statements for 2021, its net asset value per share stood at Tk13 without revaluation and earnings per share (EPS) at Tk0.90.

Its five-year weighted average earnings per share was Tk1.07.