SBAC Bank’s IPO subscription opens 5 July
The private sector lender will use the funds to cover IPO expenses and buy government securities
The initial public offering (IPO) subscription of South Bangla Agriculture and Commerce (SBAC) Bank will open on 5 July and continue until 11 July.
Every general investor participating in the subscription will receive primary shares.
The private sector lender received consent from the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday.
Keep updated, follow The Business Standard's Google news channel
On 9 May, the commission allowed the bank to raise Tk100 crore with an IPO.
The shares will be offered to the public at a face value of Tk10 each.
The private sector lender will use the funds to cover IPO expenses and buy government securities.
The bank will not be able to declare or approve dividends before listing on the capital market.
SBAC Bank, incorporated in February 2013, is going public in order to comply with a regulatory requirement to do so.
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 custody services.
SBAC Bank Chairman SM Amzad Hossain owns 3.21% shares of the financial institution and his wife Begum Sufia Amjad, also a director of the bank, owns 3.36% of shares.
Both of them are also directors of listed company Khulna Printing and Packaging Ltd, which is a losing concern of the Lockpur Group.
The company raised Tk40 crore from the stock market in 2014.
In the first nine months of 2020, the net profit of the bank was Tk64.57 crore, which was Tk66.96 crore in the same period of the previous year.
During this time, its earnings per share stood at Tk0.94, down from Tk0.98 a year ago.
As per the prospectus, interest income of the bank 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.
The bank's authorised capital is Tk1,000 crore and paid-up capital is Tk684.64 crore.
The lender has been doing business at all of its 82 branches and six sub-branches across Bangladesh.
ICB Capital Management is the issue manager of the bank.
