SBAC Bank IPO sees nearly 1400 applications, oversubscribed 14 times

South Bangla Agriculture and Commerce (SBAC) Bank Limited's initial public offering (IPO) has generated big demand from investors. 
 

SBAC's Tk100 crore IPO saw 14 times more demand than the shares on offer, with 1,391 applications submitted by investors between 5-12 July 2021, according to the Dhaka Stock Exchange (DSE) sources. 

The shares will be allotted proportionally on Thursday at 12 noon at the Dhaka Stock Exchange (DSE)Tower in Nikunj, said sources. 

In the IPO, the bank will issue 10 crore common shares at the face value of Tk10. The bank intends to collect Tk100 crore from the capital market through this IPO. The fund will be spent on government securities purchase and IPO expenses.

Managing Director and Chief Executive Officer of the bank Mosleh Uddin Ahmed said, "I would like to thank and appreciate the investors. They have responded remarkably to our offering during this severe lockdown due to Covid-19. The confidence they have shown in our bank has further enhanced our accountability in our future work plans and responsibilities." 

SBAC Bank, which started its commercial journey in April 2013, got the IPO approval on 9 May this year. 

According to the audited financial statements of the bank as on 30 September 2020, its net asset value stood at Tk13.18. In the 9 months of that year, its earnings per share was Tk0.94. ICB Capital Management Limited is acting as the issue manager of the bank in the IPO. 

According to DSE sources, general investors have applied for Tk661 crore worth IPO shares of SBAC Bank, affected investors applied for shares worth Tk131 crore, expatriate investors applied for Tk91 crore worth shares, and institutional investors applied for shares worth Tk507 crore.