SBAC Bank’s IPO subscription opens Monday
It will raise Tk100 crore from the market
The initial public offering (IPO) subscription of South Bangla Agriculture and Commerce (SBAC) Bank will open on 5 July (Monday) and will continue until 11 July.
General investors participating in the subscription will receive primary shares.
On 9 May, the Bangladesh Securities and Exchange Commission (BSEC) allowed the bank to raise Tk100 crore through an IPO.
Keep updated, follow The Business Standard's Google news channel
The shares will be offered to the public at a face value of Tk10 each.
The bank will use the fund to cover IPO expenses and buy government securities.
It will not be able to declare or approve dividends before listing on the capital market.
SBAC Bank, incorporated in February 2013, is going public to comply with a regulatory requirement.
Its Chairman SM Amzad Hossain owns 3.21% of its shares and his wife Begum Sufia Amjad, a director of the bank, holds 3.36%.
They both are also the directors of the listed company Khulna Printing and Packaging, which is a losing concern of Lockpur Group.
In the first nine months of 2020, the bank's net profit was Tk64.57 crore, down from Tk66.96 crore in the same period of the previous year.
During this period, its earnings per share stood at Tk0.94, down from Tk0.98 a year ago.
As per the bank's prospectus, its interest income was Tk463.81 crore and investment income was Tk139.99 crore in the first three quarters of last year.
Its five-year weighted average earnings per share was Tk1.24 in that period.
The bank's authorised capital is Tk1,000 crore and paid-up capital is Tk684.64 crore.
The lender operates through 82 branches and six sub-branches across Bangladesh.
ICB Capital Management is its issue manager.
