The bourse is set to get two more new companies after the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the initial public offering (IPO) applications of NRB Commercial (NRBC) Bank and Lub-rref.
NRBC will raise Tk 120 crore and Lub-rref Tk 150 crore.
As per the bank's IPO prospectus, it will offload 12 crore shares at Tk 10 each under the fixed price method and the proceeds would be used for enhancing its Tier 1 capital.
The bank would invest Tk 110 crore in government securities, Tk 6.05 crore in the secondary stock market and Tk 3.9 crore to bear IPO expenses.
Asian Tiger Capital Partners and FC Capital are the issue managers of the company.
NRBC Bank Chairman Parvez Tamal acknowledged hearing about the BSEC nod but was yet to receive the official notification from the regulator.
“The bank’s compliance would further enhance through its listing in the stock market, which is also good for us. From now on, it would be a public bank,” he added.
Apart from NRBC, South Bangla Agriculture and Commerce (SBAC) Bank is also gearing up for its stockmarket debut.
The Bangladesh Bank in 2013 gave licence to nine banks, including NRBC, on the condition that the banks would get listed on the bourses within three years of their launch.
SBAC plans to raise Tk200 crore from the capital market as part of fulfilling the regulatory requirement.
Meanwhile, Lub-rref’s shares will be sold to the general investors at a 10 per cent discount.
The cut-off price of the shares has been set at Tk 30 each after bidding by eligible institutional investors.
Institutional investors will be offered 50 per cent of the shares at the cut-off price. The remaining 50 per cent will be offered to other investors, including general investors and non-resident Bangladeshis.
The lubricant manufacturer will invest Tk98 crore to expand its existing manufacturing plant, which would enable its BNO Lubricant to capture 20 per centof the market, up from its existing share of 8 per cent, according to Lub-rref's IPO prospectus.