ICB sponsor to sell 15 lakh shares now
It attributed the reduced losses to increased capital gains from the sale of securities and higher dividend income
Highlights
- Bangladesh Development Bank holds 21.85cr shares
- Now intends to sell 15 lakh shares
- Value at prevailing price: Tk9.25cr
- Previously, it sold 10 lakh shares
- ICB's shares drop by 6.52% to Tk61.70 each
Bangladesh Development Bank – the second-largest shareholder of the Investment Corporation of Bangladesh – now plans to sell 15 lakh shares from its holding of over 25%, or 21.85 crore shares in the ICB.
Two days ago, the state-owned bank, which serves as the corporate sponsor director of the specialised financial institution supporting the capital market, sold 10 lakh shares at the prevailing market price through the Dhaka Stock Exchange (DSE).
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In a filing with the stock exchange yesterday, the Development Bank announced its intention to sell the shares at the prevailing market price within the next 30 days. Based on the current market price, the value of the shares intended for sale is around Tk9.25 crore.
ICB shares closed 6.52% lower at Tk61.70 each yesterday. The shares opened at Tk66 but faced selling pressure, leading to a price decline. The total traded value of ICB shares for the day was Tk7.33 crore.
As of October 2024, ICB's shareholding structure includes 27% held by the government, 22.73% by state-owned commercial banks, 25.31% by Bangladesh Development Bank, 12.36% by state-owned insurance corporations, 9.10% by denationalised commercial banks, 1.23% by other institutions, 0.13% by private banks, 0.60% by mutual funds, and 1.55% by the general public. Out of ICB's total 86.72 crore shares, only 3.51 crore are free-float.
Meanwhile, ICB incurred a loss of Tk75.28 crore in the July-September quarter of the current fiscal year from a loss of Tk236.52 crore in the same period of the fiscal year, as per its price-sensitive statement filed with the DSE.
It attributed the reduced losses to increased capital gains from the sale of securities and higher dividend income.
In September 2021, the Bangladesh Securities and Exchange Commission (BSEC) directed three large-cap companies – Walton, Berger Paints, and ICB – to ensure a minimum of 10% free-float shares in the market.
Following an amendment to public issue rules, the BSEC mandated that all companies must offload at least 10% of their shares to the market.
While Walton and Berger Paints are working to increase their free-float shares, ICB has yet to announce any plans to comply with this directive.
