The initial public offering (IPO) subscription time of South Bangla Agriculture & Commerce Bank (SBAC) has been extended until July 12.
The private lender's IPO subscription, which started on July 5 and supposed to end on July 11, will be continued until July 12.
The bank's IPO subscription will now end on July 12 instead of July 11 in accordance with the Bangladesh Bank DOS circular on Tuesday, according to a filing with the Dhaka Stock Exchange (DSE) on Wednesday.
According to the central bank's circular, banks will remain closed on Sunday (July 11) in addition to the weekly holidays on Friday and Saturday amid countrywide strict lockdown.
The capital market will also remained closed on Sunday as stock trading is related to bank transactions, officials said.
South Bangla Bank is the third company, whose IPO shares will be allotted on the newly introduced pro-rata basis instead of lottery system.
Minimum and maximum amount allowed for subscription for general public is Tk 10,000 (or its multiples) and Tk 50,000 respectively.
Each eligible investor (EI) who intends to submit application shall maintain a minimum investment of Tk 5.0 million for approved pension funds, recognised provident funds and approved gratuity funds and other Els of Tk 10 million only at market price in listed securities as on June 24.
The private sector lender received consent from the Bangladesh Securities and Exchange Commission (BSEC) on May 9 to raise Tk 1.0 billion through issuing IPO shares.
SBAC, which began commercial operations in Bangladesh on February 20, 2013, will issue 100 million ordinary shares at face value of Tk 10 each.
With the IPO proceeds, the bank will buy government securities and meet its IPO expenses.
SBAC's net asset value (NAV) per share stood at Tk 13.18 for the period that ended on September 30, 2020. For the nine-month period, its earning per share (EPS) was Tk 0.94.
Meanwhile, its weighted average earning per share for the last five years was Tk 1.24.
The stock market regulator gave a condition to the bank that it would not be allowed to declare and provide dividends before listing.
The bank's authorised capital is Tk 10 billion while pre-IPO paid-up capital is Tk 6.84 billion, which will stand at Tk 7.84 billion after the IPO.
ICB Capital Management is acting as the issue manager of the bank's IPO process.
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