The electronic subscription of 'ICB AMCL CMSF Golden Jubilee Mutual Fund' kicked off on Wednesday.
The Capital Market Stabilization Fund (CMSF) and ICB Asset Management Company Ltd jointly floated the closed-end fund under the fixed price method to celebrate the 50th year of the country's independence. The subscription process will end on 24 August.
The Bangladesh Securities and Exchange Commission approved the prospectus of the mutual fund on 28 June and the initial fund size has been set at Tk100 crore with a face value of Tk10 per share.
The CMSF and ICB Asset have contributed Tk50 crore and Tk20 crore to the fund respectively as sponsors. The Investment Corporation of Bangladesh has also provided Tk5 crore as a pre-IPO placement holder. The remaining Tk25 crore will be collected through the IPO.
According to the Dhaka Stock Exchange disclosure on Wednesday, eligible investors–approved pension funds, recognised provident funds and approved gratuity funds – shall maintain a minimum investment of Tk50 lakh at market price in listed securities as on 7 August (day-end) to take part in the subscriptions. For other eligible investors, the maintainable investment amount has been set at Tk1 crore.
For the general public (RB, NRB) the minimum required investment will be Tk20,000 in matured listed securities at market price—the higher closing price at the exchanges as on 7 August.
For the general public, the minimum and maximum amount allowed for a subscription would be Tk10,000.
According to the prospectus of the fund, 5% of the total public offering will be reserved for mutual funds, 5% for non-resident Bangladeshis, and 20% for other eligible investors. The remaining 70% will be reserved for general public subscriptions.