NRBC IPO oversubscribed by 11 times

The initial public offering (IPO) lottery draw of NRBC Bank will be held on March 3 to allocate its 120 million ordinary shares among successful applicants.
The commercial bank has so far received a good response from the general investors for its IPO shares under the fixed price method.
The general investors have applied to buy 10.86 times higher the number of IPO shares being offered by the bank in its IPO, officials said.
The private commercial bank raised Tk 1.20 billion by issuing 120 million ordinary shares at face value of Tk 10 each under the fixed price method.
Of the total shares, 60 per cent or worth Tk 720 million is reserved for resident Bangladeshis, affected small investors and non-resident Bangladeshis while 40 per cent or worth Tk 480 million reserved for eligible investors.
The bank received from resident Bangladeshis, affected small investors and non-resident Bangladeshis worth Tk 5.98 billion against public issue of shares worth Tk 720 million.
However, the bank received from resident Bangladeshis about Tk 5.22 billion alone against public, according to a press release.
"After a decade, a bank is getting listed with the stock market. The overwhelming IPO applications show people's trust on the bank," said SM Parvej Tomal, the chairman of NRBC Bank.
The bank will hold the lottery draw using digital platform under the supervision of the regulatory body.
After the lottery, the result will be published on the websites of the company, issue manager, Dhaka Stock Exchange and Chittagong Stock Exchange.
Earlier on November 18, 2020, Bangladesh Securities and Exchange Commission (BSEC) approved the NRBC Bank's IPO proposal to raise Tk 1.20 billion through IPO.
The IPO subscription of the bank was held between February 3 and February 9.
The fourth generation bank is the first private commercial bank in the last 12 years to be listed with the stock market. Earlier in 2008, First Security Islami Bank got listed with the stock market.
NRBC Bank will be the 31st listed bank in the DSE.
With the IPO proceeds, the bank will use Tk 1.10 billion to buy government securities, Tk 60.5 million in the secondary market for buying shares and the rest for IPO related expenses.
The bank's weighted average earnings per share for the last five years and net asset value (NAV) per share were Tk 1.55 and Tk 13.86 respectively as of June 30, 2020.
The bank's authorised capital is Tk 10 billion while its pre-IPO paid-up capital is Tk 5.82 billion.
AFC Capital and Asian Tiger Capital Partners Investment is the IPO's issue manager.
The bank was established on February 20, 2013 and the bank has 83 branches across the country till 2020.
The principal activities of the Bank are banking and related activities including accepting customer deposits, lending to retail, small and medium enterprises (SMEs) and corporate customers, foreign trade business, lease financing, project financing, inter bank borrowing and lending and dealing in government securities and equity shares etc.

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