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Search date: 07-04-2019 Return to current date: Click here

SBAC Bank to raise Tk 2.0 billion from stock market

FE Report | April 07, 2019 00:00:00

South Bangla Agriculture and Commerce (SBAC) Bank, has taken an initiative to raise Tk 2.0 billion from the capital market as part of fulfilling the regulatory requirement.

The SBAC Bank, a fourth generation private commercial bank, will go public under the fixed price method subject to approval of the regulators.

To raise the said amount of capital, the bank will offload 200 million ordinary shares at an offer price of Tk 10 each.

"We have planned to raise a capital worth Tk 2.0 billion. The IPO (initial public offering) size will depend on the approval of the central bank," said an official of the SBAC Bank.

He said the bank will submit the IPO proposal with the financial statement for the period ended on June 30, 2019.

"We wanted to go public with the financial statement for the year ended on December 31, 2018. But we will have to go public with the financial statement for the year ended on June 30, 2019 as the IPO proposal has to submit with four months from the cut-off date of year closing," the official said.

He also said their bank will go public to fulfill the regulatory requirement.

"We will also enhance our lending capacity with the fund to be raised from the capital market," said the official of the SBAC Bank.

The paid-up capital of the SBAC Bank, which was incorporated in 2013, is Tk 5.65 billion.

Meanwhile, the SBAC Bank signed an agreement on March 31 last with its issue manager--ICB Capital Management.

The top officials of the bank and the issue manager were present at the signing ceremony held at head office of the bank in the capital Dhaka.

Md. Sohel Rahman, CEO (additional charge) at ICB Capital Management, said they would start the job of preparing IPO proposal after getting the financial statement of the bank.

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