Union Bank's IPO Subscription Starts From 26 December 2021
Union Bank Limited's initial public offering (IPO) application for withdrawing funds from the country's capital market has been accepted. The bank's IPO application will start tomorrow, Sunday (December 26, 2021). It will end on December 30, 2021.
This information has been known from Dhaka Stock Exchange (DSE) and bank sources. Earlier, the regulator Bangladesh Securities and Exchange Commission (BSEC) approved the bank's IPO.
According to the data, Union Bank will raise Tk 426 crore by issuing 426 million ordinary shares in the capital market. In this case, the price of each share has been fixed at 10 rupees. The bank will raise funds from the capital market and spend on SME and project financing, purchase of government securities, investment in the stock market, and IPO costs.
According to the company's audited financial statements for the financial year ended December 31, 2020, the net asset value without revaluation has been Rs. The average earnings per share (EPS) for the last 5 years has been 1.82. Prime Bank Investment and BRAC EPL Investment Limited are in charge of the company's issue management in the IPO.
Also mentioned that according to Bangladesh Bank's DOS Secular No. 01 dated 10/02/2020, the bank has to invest 200 crores in securities listed on the stock market by 2021. In addition, the bank may not declare, approve or distribute any dividend before listing on the stock exchange.
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