SBAC gets BB nod to go public

South Bangla Agriculture and Commerce (SBAC) Bank on Wednesday received the approval from Bangladesh Bank to raise Tk 100 crore from the stock market.

The majority of the initial public offering proceeds will be invested in several government securities and the stock markets, said Tariqul Islam Chowdhury, managing director and chief executive officer of SBAC.

The seven-year-old bank will offload 10 crore ordinary shares at Tk 10 each. Its IPO is awaiting the nod from the Bangladesh Securities and Exchange Commission.

As of September, its profit after tax stood at Tk 67.5 crore. Its authorised capital is Tk 1,000 crore and paid-up capital Tk 684.6 crore.    

The central bank also instructed SBAC to send another plan on how it would raise the remainder of its required capital through repeat public offering.

ICB Capital Management will act as the issue manager.