Union Bank, Krishibid Feed get BSEC’s nod to raise fund from stock market

Business Desk :
The stock market regulator on Sunday gave go-ahead to Union Bank to raise Tk 428 crore from the public, which will be the largest initial public offering (IPO) in the banking sector.
Among all sectors, Union Bank’s IPO is going to be the fourth largest after Robi Axiata’s Tk 523 crore, Grameenphone’s Tk 486 crore and Mobil Jamuna’s Tk 460 crore. Bangladesh Securities and Exchange Commission approved the Union Bank’s proposal to go public at a meeting chaired by its chairman, Prof Shibli Rubayat Ul Islam.
Union Bank would issue 42.80 crore ordinary shares at a face value of Tk 10, the BSEC said in press release.
The bank would spend the IPO proceeds to finance to SMEs, buy government securities and stocks from the capital market.
It weighted average earnings per share in the last five years was Tk 1.82, according to the press release.
Meanwhile, Krishibid Feed, a small and medium enterprise, has also got nod to raise fund of Tk 22 crore from the stock market.
To ensure finance for SME sector form the stock market, the company’s application was approved, Bangladesh Securities and Exchange Commission said in a press release.
As the company is an SME so its trading would raise fund from qualitative investors and secondary trade would be in the SME platform. The company would offload 2.20 lakh shares at a face value of Tk 10. With the qualified investor offer (QIO) proceeds, the company would build a factory building, repay bank loans, and buy machineries, diesel generator and delivery van.