The NRB Commercial (NRBC) Bank received 10.86 times more bid for its12 crore shares put up on sale for general investors as part of its initial public offering (IPO) to raise Tk 120 crore via the fixed price method.
Investors deposited Tk 597.7 crore against the required Tk 72 crore. The IPO lottery is scheduled for March 3. The bank will organise the lottery online under the supervision of the regulatory body.
General investors were allocated 60 per cent of the shares and institutional investors the remaining 40 per cent.
“The overwhelming IPO applications show people’s trust in the bank,” said SM Parvez Tamal, the bank’s chairman.
The seven-year-old bank will use Tk 110 crore of the IPO proceeds to purchase government securities, Tk 6.05 crore for investment in the secondary market and Tk 3.95 crore as IPO expenses.
Previously, on November 18 last year, the bank got the securities regulator's approval to raise the funds through an IPO.
It is the first bank to be listed on the country's stock market in 12 years.
Asian Tiger Capital Partners and FC Capital are the issue managers of the IPO.
The bank's net profit in 2019 was Tk 115.4 crore.
Its deposits stood at Tk 9,480 crore and its loans Tk 7,462 crore, according to the latest data from the bank.
The bank has 83 branches, 400 sub-branches and 589 agents across the country.
