Union Bank gets BSEC nod to float IPO

Union Bank has received a green signal from the securities regulator to go public.

The commission approved an initial public offering (IPO) of the bank to raise Tk 428 crore from the stock market, said the Bangladesh Securities and Exchange Commission (BSEC) in a statement on Sunday.

The bank will issue 42.8 crore ordinary shares with the face value of Tk 10 each. The raised fund will be spent on financing the SME sector, government securities purchase, investment in the capital market and meeting IPO costs.

According to the company’s audited financial statements as of December 31, 2020, the net asset value (NAV) without revaluation was Tk 16.38. And the earnings per share (EPS) was Tk0.94, which was Tk 1.77.

According to Bangladesh Bank, a bank has to invest Tk 200 crore in the listed securities by 2021. The bank will not be allowed to declare any dividend prior to listing on the stock exchange.