The Bangladesh Securities and Exchange Commission (BSEC) has exempted Midland Bank from a provision of public issue rules, so that the new generation private sector lender can consider its employee shares as part of an initial public offering (IPO).
As per public issue rules, IPO shares of the bank were issued only to the eligible investors and the general public including individuals and non-resident Bangladeshis.
But now, after the exemption of the provision, the bank will be able to allot 35 lakh shares to its employees, which will be considered as a part of the IPO.
Earlier, the BSEC also permitted Robi Axiata to allot shares to the company's shareholders.
Midland Bank, which was incorporated on 20 March 2013, will raise Tk70 crore from the stock market by issuing 7 crore shares through the IPO under the fixed-price method.
LankaBangla Investments Limited is the issue manager of the IPO.
The BSEC said after allotment of 35 lakh ordinary shares to Midland Bank's employees, the remaining 6.65 crore ordinary shares shall be distributed as per public issue rules.
The securities regulator also said the employees of Midland Bank can subscribe to their portion of ordinary shares during the period of general public subscription. The subscribed shares shall be locked in for two years from the date of issuance of prospectus or close of subscription, whichever comes later.
As per its audited financial statements in 2020, Midland Bank made a profit of Tk65.63 crore, which was Tk55.74 crore in 2019.