No limit to NRB Bank IPO shares subscription

The capital market regulator has lifted the bar in the initial public offering (IPO) applications of general investors for getting allotment of shares for NRB Bank Limited — a fourth-generation private sector commercial bank.

Investors in NRB Banks' IPO can now apply for shares without any value restrictions, as the regulator has removed the standard Tk10,000 cap typically imposed for an investor on IPO applications.

The IPO subscription by the general investors will start on 28 January and continue till 1 February.

To apply for the company's IPO shares, Bangladeshi resident general investors will need to have a minimum Tk50,000 investment in matured listed securities, and non-resident Bangladeshis Tk1 lakh as on 3 January 2024.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) lifted the bar on Best Holdings' IPO applications, but later on Tuesday, the regulator imposed limits on general investors on receiving allotments of shares. 

Regarding Best Holdings' in a letter, the commission said, "The subscribed limit for the application amount is Tk10,000 or its multiples, but not exceeding Tk15 lakh."

On 9 November, NRB Bank received approval from the BSEC to raise Tk100 crore through an initial public offering (IPO) at the fixed price method.

Raising the fund, the bank will invest Tk92 crore in government securities, Tk4.17 crore in the secondary market and Tk3.83 crore to meet its IPO expenses.

According to the financial report from January to September 2022, the consolidated net interest income of the bank stood at Tk78.69 crore, which was Tk74.12 crore in the same period of the previous year.

Its earnings per share for the period was Tk0.27, with a five-year weighted average of Tk0.72.

UCB Investment and Shahjalal Equity Management are working as the issue managers for the company.

The bank cannot declare dividends, make distributions, or approve any proposals before it is listed on the capital market.

NRB Bank, established in 2013, launched a wide variety of products and services under different categories such as retail banking, SME banking, NRB banking, corporate banking, and e-banking.