SBAC Bank IPO gets regulator’s nod

The South Bangla Agriculture and Commerce (SBAC) Bank, which is looking to raise Tk100 crore from the public, has gotten the green light from the Bangladesh Securities and Exchange Commission (BSEC).

The approval for the initial public offering (IPO) was given at a commission meeting held at its headquarters on Sunday. 

Mosleh Uddin Ahmed, managing director and CEO of SBAC Bank, said: "Since the bank is run using the public’s money, due diligence is properly observed in all activities.

“And inclusion in the stock market will further increase transparency and accountability in the overall activities of the bank. We promise to give better returns to the investors by further improving the financial indicators of our bank. We are also committed to ensuring good corporate governance,” he added.

The BSEC also approved two brokerage houses' proposal to open three digital booths at the meeting, the commission said in a statement.

BSEC Chairman Professor Shibli Rubaiyat-Ul Islam presided over the meeting, 

As per the bank's IPO prospectus, it will offload 100 million shares at Tk10 each under the fixed price method.

The bank is expected to invest the majority of these funds in government securities, while the remaining funds will be used to bear IPO expenses.

ICB Capital Management Limited is the issue manager of the bank.

According to the financial statement ending June 30, 2019, the company's net asset value (NAV) per share was Tk13.18, while earnings per share (EPS) were Tk0.94.

The bank has a network of 82 branches and six sub-branches around the country.

SBAC has a board of 18 members headed by SM Amzad Hossain as the chairman.

The Bangladesh Bank in 2013 gave licence to nine banks, including SBAC Bank, on the condition that the banks would get listed on the bourses within three years of their launch. The latest deadline for listing expired in December 2019.

At present, there are 61 scheduled banks in the country, with 31 of them listed on the bourses.