The stock market regulator has allowed Global Islami Bank to raise Tk 4.25 billion from the capital market, which will be the second largest initial public offering (IPO) in the banking sector.
The approval came on Wednesday at a meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC) presided over by its chairman Prof. Shibli Rubayat Ul Islam.
As per the regulatory approval, the fourth-generation private commercial bank will issue 425 million ordinary shares at a face value of Tk 10 each under the fixed price method.
Among all sectors, Global Islami Bank's IPO is going to be the fifth largest IPO after Robi Axiata (Tk 5.23 billion), Grameenphone (Tk 4.86 billion), MJL Bangladesh (Tk 4.60 billion) and Union Bank (Tk 4.28 billion).
The private sector lender will utilize the IPO proceeds for investing in small and medium enterprises (SMEs), buying government securities, investing in listed companies and meeting the IPO expenses.
LankaBangla Investments and Prime Bank Investment are jointly working as the issue manager for the Global Islami Bank's IPO.
According to the financial statement until September 30, 2021, the bank's net asset value (NAV) per share (without revaluation) was Tk 14.42 and earnings per share (EPS) of 1.91 while the weighted average EPS for the last five years stood at Tk 1.08.
The commission gave a waiver the private commercial bank of the section 6/(1) of public issue rules-2015 and allowed 25 per cent IPO share reserve for non-resident Bangladeshi as per instruction of Bangladesh Bank and parliamentary standing committee on the Ministry of Expatriates' Welfare & Overseas Employment, upon application of Global Islami Bank.
And 25 per cent IPO shares will be reserved for eligible investors while remaining IPO shares will be allocated for general investors other than NRBs.
However, if the non-resident Bangladesh's 25 per cent IPO subscription is not filled-up, the under-subscription part will be allocated among general investors on a pro-rata basis, according to the BSEC approval.
The Bangladesh Bank in 2013 gave licence to nine banks, including NRB Global Bank (now Global Islami Bank), on condition that the banks would be listed on the capital market within three years of their commercial operations.
Global Islami Bank, a full-fledged Islamic Shariah-based commercial bank, started operation on 23 October 2013.
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