15.5 times over-subscription by local investors, 3 times by NRBs
FE Report | Sunday, 15 June 2008
The ICB AMCL Second NRB Mutual Fund was oversubscribed by 15.5 times of the 2 (two) million shares on offer for resident Bangladeshis and three times of the 6 (six) million shares for Non Resident Bangladeshis (NRBs).
The close-end mutual fund, the largest initial public offering (IPO) worth Tk 1.0 billion in the country's stock market, received bids worth Tk 3.10 billion or 15.5 times of the 2 million shares on offer for resident Bangladeshis and Tk 1.80 billion or three times of the 6 million shares for NRBs, according to Investment Corporation of Bangladesh (ICB).
Of the total size, 60 per cent of the units have been reserved for NRBs, 20 per cent for resident Bangladeshis, 10 per cent for mutual funds and 10 per cent for the sponsor.
Of the 80 per cent, the IPO was oversubscribed by 6.10 times, with demand worth about Tk 4.90 billion, according to data available with ICB.
Subscription of the Tk 1.0 billion Mutual Fund (face value Tk 100) began on May 15 and continued until May 29 for resident Bangladeshis. But subscription for the Non-Resident Bangladeshis (NRBs) remained open from May 15 to June 7.
The state-owned ICB is the trustee and custodian of the IPO with the face value Tk 100 per share.
ICB Capital Management is the sponsor while ICB Asset Management Company Ltd (AMCL) is the manager to the issue.
Meanwhile, the number of NRB Beneficiary Owners account (BO) holders rose to about 40,000 until date from 22,000 of March last.
"The new BO account-holders opened the accounts targeting our new mutual fund, which reflected the growing involvement of the NRBs in the country's securities market," an ICB source told the FE.
This will be the 15th mutual fund to be traded in the country's stock market.
Currently, a total of 14 mutual funds are listed on the stock exchanges. Of them, ICB and its subsidiaries have floated 11 mutual funds while BSRS and private sector companies AIMS and Grameen have one such fund each.
The total issued capital of the mutual funds is worth Tk 866 million only.
However, the subscription of the largest mutual fund- Grameen One Scheme Two- worth Tk 1.25 billion begins June 30.
The second scheme of Grameen Mutual Fund One is sponsored by Grameen Bank under the management of AIMS of Bangladesh Limited, a leading asset management company.
The subscription of Grameen-Two will close July 14 for resident Bangladeshi but for NRB it will remain open till July 23.
Earlier, Grameen One was the largest mutual fund with Tk 170 million worth of units and Shahjalal Bank was the largest IPO worth Tk 935.82 million.
The close-end mutual fund, the largest initial public offering (IPO) worth Tk 1.0 billion in the country's stock market, received bids worth Tk 3.10 billion or 15.5 times of the 2 million shares on offer for resident Bangladeshis and Tk 1.80 billion or three times of the 6 million shares for NRBs, according to Investment Corporation of Bangladesh (ICB).
Of the total size, 60 per cent of the units have been reserved for NRBs, 20 per cent for resident Bangladeshis, 10 per cent for mutual funds and 10 per cent for the sponsor.
Of the 80 per cent, the IPO was oversubscribed by 6.10 times, with demand worth about Tk 4.90 billion, according to data available with ICB.
Subscription of the Tk 1.0 billion Mutual Fund (face value Tk 100) began on May 15 and continued until May 29 for resident Bangladeshis. But subscription for the Non-Resident Bangladeshis (NRBs) remained open from May 15 to June 7.
The state-owned ICB is the trustee and custodian of the IPO with the face value Tk 100 per share.
ICB Capital Management is the sponsor while ICB Asset Management Company Ltd (AMCL) is the manager to the issue.
Meanwhile, the number of NRB Beneficiary Owners account (BO) holders rose to about 40,000 until date from 22,000 of March last.
"The new BO account-holders opened the accounts targeting our new mutual fund, which reflected the growing involvement of the NRBs in the country's securities market," an ICB source told the FE.
This will be the 15th mutual fund to be traded in the country's stock market.
Currently, a total of 14 mutual funds are listed on the stock exchanges. Of them, ICB and its subsidiaries have floated 11 mutual funds while BSRS and private sector companies AIMS and Grameen have one such fund each.
The total issued capital of the mutual funds is worth Tk 866 million only.
However, the subscription of the largest mutual fund- Grameen One Scheme Two- worth Tk 1.25 billion begins June 30.
The second scheme of Grameen Mutual Fund One is sponsored by Grameen Bank under the management of AIMS of Bangladesh Limited, a leading asset management company.
The subscription of Grameen-Two will close July 14 for resident Bangladeshi but for NRB it will remain open till July 23.
Earlier, Grameen One was the largest mutual fund with Tk 170 million worth of units and Shahjalal Bank was the largest IPO worth Tk 935.82 million.