SBAC Bank to debut on bourses Wednesday
The company’s primary shares were credited to the beneficiary owner (BO) accounts on Monday
South Bangla Agriculture and Commerce (SBAC) Bank will make its debut on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Wednesday.
On Monday, the company's primary shares were credited to the beneficiary owner (BO) accounts.
Earlier, the DSE formally allocated SBAC Bank's IPO shares under the pro-rata basis.
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In return for the application of Tk10,000, general investors will get 60 shares, affected investors 76, and non-resident Bangladeshi (NRB) investors will get 108 shares of the company, according to the DSE.
The company's IPO shares have been 13.91 times oversubscribed by eligible investors who submitted applications through the electronic subscription system (ESS).
The company completed its IPO subscription from 5 July 12 July this year.
On 9 May, the Bangladesh Securities and Exchange Commission (BSEC) 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.
SBAC Bank Chairman SM Amzad Hossain owns 3.21% shares of the financial institution and his wife Begum Sufia Amjad, a director of the bank, owns 3.36% shares.
Both of them are also directors of listed company Khulna Printing and Packaging Ltd, which is a losing concern of the Lockpur Group.
In the first nine months of 2020, the net profit of the bank was Tk64.57 crore, which was Tk66.96 crore during the same period of the previous year.
During this time, its earnings per share (EPS) 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.
