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IPO of Global Islami Bank to open October 16

The bank to raise Tk 4.25b under fixed-price method

FE REPORT | September 15, 2022 00:00:00

The initial public offering (IPO) of Global Islami Bank will open for subscription on October 16, aiming to raise Tk 4.25 billion from the capital market under fixed-price method.

The IPO subscription will close on October 20, according to its abridged prospectus published on Wednesday.

It will be the fifth largest IPO after Robi Axiata (Tk Tk 5.23 billion), Grameenphone (Tk 4.86 billion), MJL Bangladesh (Tk 4.60 billion) and Union Bank (Tk 4.28 billion), according to data available with the Dhaka Stock Exchange (DSE).

The new generation private commercial bank received the approval for its IPO from the Bangladesh Securities and Exchange Commission (BSEC) on June 15 this year.

As per the regulatory approval, the bank will issue 425 million ordinary shares at a face value of Tk 10 each under the fixed price method.

The private sector lender will utilise the IPO proceeds for investing in small and medium enterprises (SMEs), buying government securities, investing in listed companies and meeting the IPO expenses.

As per present rule, resident Bangladeshis applying for IPO subscription must have a minimum investment of Tk 50,000 in matured listed securities at market price while the investment figure is Tk 100,000 for non-resident Bangladeshis (cut-off date is yet to be fixed).

Minimum and maximum amount allowed for subscription for the general public would be Tk 10,000.

According to the financial statement as on September 30, 2021, the bank's net asset value (NAV) per share (without revaluation) was Tk 14.42 and earnings per share (EPS) Tk 1.91 while the weighted average EPS for the last five years stood at Tk 1.08.

Following the direction of the Bangladesh Bank, the securities regulator allowed the bank to allocate 25 per cent shares for non-resident Bangladeshis. The remaining 75 per cent of shares will be broken into two allocations with 75 per cent for general investors and 25 per cent for eligible investors.

LankaBangla Investments and Prime Bank Investment are jointly working as the issue manager for the Global Islami Bank's IPO.

Global Islami Bank (formerly NRB Global Bank) is a full-fledged Islamic Shariah-based commercial bank. It started operation in 2013.

Currently, 33 banks are listed on the stock exchanges in the country.

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