NRBC Bank holds lottery draw for IPO

A digital lottery draw for the initial public offering (IPO) of NRB Commercial (NRBC) Bank was held on Wednesday as the company’s IPO was more than 10.86 times oversubscribed.

The results of the lottery to determine which subscribers would receive shares have been published on the official websites of the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and the bank.

The bank received 10.86 times more bid for its 12 crore shares up on sale for general investors as part of its IPO to raise Tk 120 crore via the fixed price method.

General investors were allocated 60 per cent of the shares and institutional investors the remaining 40 per cent.

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.

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 AFC Capital are the issue managers of the bank.

"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,” said Parvez Tamal, chairman of NRBC Bank.

According to an audited report of the year ended on 31 December, 2019, the bank's net profit was Tk 115.36 crore.

The net asset value per share (NAVPS) of the bank is at Tk 13.86. Its deposits stood at Tk 9,480 crore and its loans Tk 7462 Crore, according to the latest data from the bank.

NRBC Bank was established on February 20, 2013 and began operating from 4 April the same year.

The bank has 83 branches, 400 sub-branches and 589 agents across the country.