- Net profit after tax & provision was Tk98.84 crore for the year 2020
- EPS stood at Tk1.77
- Authorised capital is Tk1000 crore
- Paid-up capital, Tk559 crore
- Classified investment is 4.53% of total investment
Fourth generation Union Bank Ltd has announced it will offload its shares in the stock market with initial public offering (IPO).
The bank wants to raise Tk428 crore from the stock market under the fixed price method. Each share of the bank will be issued at a face value of Tk10.
Union Bank will use its IPO funds for business expansion.
Prime Bank Investment and Brac EPL Investments Limited will be the issue managers for the bank's IPO.
Union Bank's Company Secretary, Ali Hossain, said, "The bank will apply to the Bangladesh Securities and Exchange Commission (BSEC) for its IPO approval in the next two months."
According to sources, the bank made a profit of Tk98.84 crore after tax and provisions, while its earnings per share (EPS) stood at Tk1.77 for the year ending 31 December, 2020.
The bank's classified investment is 4.53% of its total investment.
Its net profit was Tk59.44 crore and EPS of Tk1.13 for the year ending 31 December, 2019.
Union Bank, a full-fledged Islamic Shariah based commercial bank, started on 1 April, 2013, with the slogan, 'Local Bank, Global Opportunity.'
Its authorised capital is Tk1,000 crore and paid-up capital Tk559 crore.
According to licensing conditions, the bank was supposed to go public within three years of operation.
But failing to meet the deadline, the bank got a time extension of three more years till December 2019.
In November last year, the fourth generation NRB Commercial Bank secured approval of the stock market regulator to raise capital by issuing shares.
The bank raised Tk120 crore under the fixed price method and got listed on the stock market in 2021.
South Bangla Agricultural Bank recently filed an application with BSEC to raise Tk100 crore in capital with an IPO under the fixed price method.
Also, Midland Bank has signed an agreement with its issue manager to raise Tk70 crore on the stock market.