Midland Bank Ltd is going to offer 50 lakh ordinary shares to its employees under its initial public offering (IPO).
In September, the fourth-generation bank got the nod from the Bangladesh Securities and Regulatory Commission to raise Tk 70 crore from the stock market by issuing 7 crore shares through an IPO.
The bank will issue 50 lakh shares, or 7.14 per cent of the total issues to be floated, to its employees under an employee share purchase plan, said Midland Bank in a press release.
The rest of the shares will be distributed among eligible investors and general public investors in line with the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
The subscription to the IPO will commence on February 16 and it will continue up to February 23.
Midland Bank will utilise the IPO proceeds to invest in government securities and the secondary market and cover IPO expenses.
As per the IPO prospectus, the total loans and advances of the bank were Tk 4,586 crore as on 31 December 2021 whereas the total deposit was Tk 5,073 crore.
The pre-IPO paid-up capital of Midland Bank is Tk 569 crore and it will go up to Tk 639 crore after the share issuance.
The sponsors and directors of the issuer will hold 78.63 per cent of the company after the bank makes its debut on the stock market.
The ratio of non-performing loans and the capital adequacy ratio were 3.17 per cent and 15.87 per cent respectively for the year that ended on December 31, 2021.
The weighted average earnings per share for the last five years was Tk 1.07.
The bank commenced its banking operation on June 20, 2013. At present, it runs its operation through 36 branches, 16 sub-branches, 57 automated teller machines, 107 agent banking outlets and 10 collection booths, covering commercially important locations across the country.
LankaBangla Investments Limited is acting as the Issue manager for the IPO, the press release said.
Once listed, Midland Bank would be the 35th lender in Bangladesh to have gone public.
