Janata Bank to launch IPO next month
Wednesday, 16 December 2009
FE Report
Janata Bank Limited (JBL), the nation's second largest lender, will raise Tk 1.0 billion in an initial public offering (IPO) next month, officials said Tuesday.
The state-owned bank with an asset base of Tk 250 billion will sell 10 million shares at Tk 100 each under its IPO placement on
the stock market.
The bank's officials noted the state-controlled bank with 848 branches including four overseas branches in the United Arab Emirates and one exchange company in Italy will use proceeds from the share sale to finance its expansion.
"It's not the matter of jacking up our capital base. Rather, the potential listing will certainly raise our profile in the country's banking industry," a Janata official said.
"If the IPO gets going, we will be the second state bank to be listed in the capital market after Rupali. Even we overtook two of our peers," he added.
ICB Capital Management Limited (ICML) - a subsidiary of Investment Corporation of Bangladesh (ICB) -will act as the issuer.
The bank, still scrambling to plug its financial leakage and minimise decades of losses, became a public limited company in 2007 under a World Bank-financed programme to ensure its operational autonomy.
An official involved in the issuing process said Janata's board has already approved its prospectus, submitted to the Securities and Exchange Commission (SEC).
The bank submitted the prospectus fulfilling the basic criteria and obtaining approval of finance ministry.
Janata Bank Limited (JBL), the nation's second largest lender, will raise Tk 1.0 billion in an initial public offering (IPO) next month, officials said Tuesday.
The state-owned bank with an asset base of Tk 250 billion will sell 10 million shares at Tk 100 each under its IPO placement on
the stock market.
The bank's officials noted the state-controlled bank with 848 branches including four overseas branches in the United Arab Emirates and one exchange company in Italy will use proceeds from the share sale to finance its expansion.
"It's not the matter of jacking up our capital base. Rather, the potential listing will certainly raise our profile in the country's banking industry," a Janata official said.
"If the IPO gets going, we will be the second state bank to be listed in the capital market after Rupali. Even we overtook two of our peers," he added.
ICB Capital Management Limited (ICML) - a subsidiary of Investment Corporation of Bangladesh (ICB) -will act as the issuer.
The bank, still scrambling to plug its financial leakage and minimise decades of losses, became a public limited company in 2007 under a World Bank-financed programme to ensure its operational autonomy.
An official involved in the issuing process said Janata's board has already approved its prospectus, submitted to the Securities and Exchange Commission (SEC).
The bank submitted the prospectus fulfilling the basic criteria and obtaining approval of finance ministry.