LankaBangla Securities Ltd will hold a roadshow tomorrow for institutional investors, as the stockbroker plans to go for an initial public offering (IPO) using book building method, according to a report in the Dhaka-based Daily Star newspaper.
If approved by the stockmarket regulator, it will be the first listed brokerage firm. A roadshow is required by the book building regulations before price discovery, it said. “The brokerage firm whose existing paid-up capital is Tk 55 crore will float three crore ordinary shares of Tk 10 each. After the IPO, its paid-capital will reach Tk 85 crore. With the IPO proceeds, the company will go for business expansion and diversification,” the report quoted an official as saying.
A subsidiary of LankaBangla Finance Ltd, the firm may also go for strategic investment in other companies, participate in bond market and effectively activate dealership activities. The stockbroker was the top performer on the two bourses in terms of turnover in the last few years, the report said . Last month, its daily average turnover was more than Tk 200 crore on Dhaka Stock Exchange. LankaBangla Securities started operations in the capital market in 1998.