IFIC 1st Mutual Fund starts trade tomorrow.

Dhaka Wednesday, March 31, 2010

IFIC Bank 1st Mutual Fund is expected to start trade on bourses tomorrow.

The fund received the final approval for listing on Dhaka Stock Exchange and Chittagong Stock Exchange on Monday, according to a statement.

The size of the fund is Tk 120 crore, of which Tk 40 crore was raised through an initial public offer.

A record number of investors - 11 lakh applied with Tk 703 crore, representing an over-subscription by more than 17 times.

The unaudited net asset value per share of the fund as of March 25 was Tk 11.65 at market. This implies a consolidated gain (realised and unrealised) of almost Tk 20 crore.

RACE Asset Management will manage the fund while the Investment Corporation of Bangladesh will be the trustee and custodian.

FE Report

IFIC Bank 1st Mutual Fund IPO lottery held.

Dhaka, Thursday March 11 2010

The IPO lottery of IFIC Bank 1st Mutual Fund was held at the Bangabandhu International Conference Center in the city Tuesday.

The size of the fund is Tk. 1.2 billion, of which Tk. 400 million is being raised through the IPO process. The Fund received the largest number of applications for an IPO in Bangladesh, and was oversubscribed by more than 17 times.

In his speech, RACE Asset Management CEO Dr Hasan Imam said: "Bangladesh capital market needs more Mutual Funds to provide stability during periods of volatility. IFIC Bank and ICB, together with RACE, have taken a pioneering role in promoting capital market efficiency through the IFIC 1st Mutual Fund. We have already begun the investment process and we hope to provide our investors with healthy returns over the lifetime of the fund."

Mr. Ashim Chowdhury, Senior Vice President and Head of the Capital Market Division of IFIC Bank, and several senior officials from the DSE, CSE, ICB and CDBL were present on the occasion.

Trust Bank First Mutual Fund debuts tomorrow.

Dhaka Tuesday, 26 January, 2010

Star Business Desk

Trust Bank First Mutual Fund will make trade debut tomorrow and Prime Bank ICB AMCL First Mutual Fund on February 2.

The Dhaka Stock Exchange (DSE) at a board meeting yesterday approved the listing of the two closed-end mutual funds and set the dates of their trade debut.

The size of the 10-yearly Trust Bank First Mutual Fund is Tk 200 crore, of which sponsors funded Tk 40 crore, while Tk 120 crore was raised through pre-IPO private placement and the rest Tk 40 crore through IPO (initial public offering). Per unit price of the fund is Tk 10.

The Tk 100-crore Prime Bank ICB AMCL First Mutual Fund is also a 10-yearly one. Sponsors funded Tk 20 crore, while Tk 40 crore came through pre-IPO private placement and Tk 40 crore from IPO. Its unit price is Tk 10 each.

FE Report

Trust Bank 1st MF debut trading likely this week

Dhaka, Sunday January 24 2010

Trust Bank First Mutual Fund received the final approval for listing in both the Dhaka Stock Exchange and the Chittagong Stock Exchange Thursday. The fund is expected to start trading this week.

With fund size of Tk. 2.0 billion, Trust Bank 1st Mutual Fund is currently the largest mutual fund and the second bank sponsored mutual fund in Bangladesh. It can be noted that the IPO for Trust Bank 1st Mutual Fund was oversubscribed by more than ten times (10x), indicating a strong demand for mutual fund IPOs amongst investors.

During a meeting with the Bangladesh Merchant Bankers Association (BMBA) on Thursday, DSE President Mr. Md. Rakibur Rahman commented that the DSE Listing Committee was very pleased with the fact that Trust Bank 1st Mutual Fund is coming to the market with a substantial profit of about Tk. 25 crores.

Subscriptions started for Trust Bank First Mutual Fund.

Dhaka Monday, December 7, 2009

The Tk 200 crore Trust Bank 1st Mutual Fund is also a 10-yearly scheme, in which, the IPO and sponsor's portion is Tk 40 crore each. The remaining Tk 120 crore has already been raised through pre-IPO placement.

FE Report

AB Bank to float country's biggest mutual fund

Dhaka, Monday October 19 2009

AB Bank Ltd has also joined the queue of private commercial banks and financial institutions, awaiting the nod of the capital market regulator to launch mutual funds.

The bank Sunday disclosed that it was going to launch a mutual fund worth Tk 3.50 billion (350 crore) subject to approval of the Securities and Exchange Commission (SEC).

"Twenty per cent of the proposed mutual fund will be kept for sponsors, 50 per cent for the public and the rest for pre-IPO placement," said Fazlur Rahman, deputy managing director of AB Bank Ltd.

This is the largest ever proposed mutual fund in the country. Race Asset Management Company is the fund manager of the proposed fund.

FE Report

EBL First Mutual Fund trading begins today

Dhaka, Wednesday August 19 2009

EBL First Mutual Fund will make debut on DSE and CSE today (Wednesday) under the trading code of 'EBL1STMF'.

The RACE Management, the second generation asset management company, has received formal permission from both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) for beginning share trading of the fund, says its press release Tuesday.

The Mutual Fund worth Tk 1.0 billion will be the 18th such fund listed with the bourses. Eastern Bank Ltd (EBL), a private commercial bank, is the sponsor while RACE is the issue manager. Per unit price of the fund is Tk 10.

Initial public offering (IPO) of the fund was oversubscribed by 17 times against 20 per cent allocated for public. Sixty per cent of fund has been kept for pre-IPO placement and the rest 20 per cent for sponsor.

Subscription was opened on June 21 last and closed on June 25 for resident Bangladeshis and on July 4 for non-residence Bangladeshis. Currently, there are 17 listed mutual funds with the DSE, having a total issued paid-up capital of $48 million or Tk 3316 million.

Meanwhile, RACE Management is likely to float six mutual funds within one year in a bid to create further demand for quality shares in the market.

"We have a plan to bring six more mutual funds, mostly sponsored by banks, in near future," Hasan Imam, CEO and managing director of RACE, told a press meet in a city hotel Monday. "Besides, we have also plan to bring new products in years to come," he added.

EBL First Mutual Fund worth Tk 1.0 billion, sponsored by Eastern Bank Limited, is the first such fund managed by the RACE. It was oversubscribed by 17 times against 20 per cent initial public offering.

Presently, RACE is working on three mutual funds, which are being sponsored by Trust Bank, IFIC Bank and EXIM Bank.

It obtained licence from the Securities and Exchange Commission (SEC) last year and was formed by a group of professionals with many years of investment management and capital market research experience.

Hasan, who has a 10-year working experience in the US financial sector (Wall Street), also sees a great potential in the local mutual fund industry, as the mutual funds' market capitalisation in Bangladesh is less than three percent.

SEC Approves EBL First Mutual Fund Prospectus

Dhaka Monday May 25, 2009

The Securities and Exchange Commission granted its approval to the prospectus and public offering of the Tk. 100 crore EBL FIRST MUTUAL FUND on May 25, 2009. Of the total Tk. 100 crore, Tk. 20 crore already came from Eastern Bank (Sponsor of the fund) and Tk. 60 crore came from pre-IPO placement to various institutions and parties.  The remaining Tk. 20 crore will be raised through the Initial Public Offering (IPO).  For the IPO round, Tk. 2.00 crore has been reserved for mutual funds and other collective investment schemes, Tk. 2.00 crore reserved for Non-Resident Bangladeshis, Tk.16.00 crore has been reserved for Resident Bangladeshis.

Following the SEC’s approval, the abridged version of the prospectus was published on 26 May, 2009 in two national dailies - “The Financial Express” and “The Daily Naya Diganta”.

Copies of the prospectus is available at our registered office located at Akram Tower, 7th floor, Suite # 03, Shahid Nazrul Islam Avenue (15/5, bijoy Nagar), Dhaka- 1000. Interested parties may also download the prospectus & IPO form from our website (www.racebd.com).

The subscription period will start on June 21, 2009 and will close on June 25, 2009 for resident Bangladeshis and on July 04, 2009 for non-resident Bangladeshis.

SEC approved the trust deed of the proposed EBL First Mutual Fund.

Dhaka Sunday March 12, 2009

The Securities and Exchange Commission (SEC) Wednesday approved the trust deed of the proposed EBL First Mutual Fund.

Besides, the securities regulator gave permission to four commercial banks to operate as merchant banks.
The four banks are the state-owned Sonali Bank and Agrani Bank and private sector banks, the Southeast Bank Ltd and the Standard Bank Ltd. The Janata Bank was the first state-owned bank that got merchant bank licence last month.
The paid-up capital of the Sonali Bank is Tk 9.0 billion, the Agrani Bank Tk 2.48 billion, the Southeast Bank Tk 2.85 billion and the Standard Bank Tk 2.20 billion.

With the latest entry of four commercial banks, the number of merchant banks in the country now stands at 30.

"The commission expects that the commercial banks with their huge paid-up capital will play a pivotal role in increasing fund flow to the stock market," said Farhad Ahmed, SEC executive director, after the commission meeting.

"With the new AMC, we hope the number of mutual funds will increase, which will help bring depth in the market," Farhad said.

The commission also approved trust deed of EBL First Mutual Fund. The state-owned Investment Corporation of Bangladesh (ICB) will act as custodian and trustee for the forthcoming mutual fund.

The SEC issued an asset management licence to Race Asset Management Private Co Ltd

Dhaka Wednesday Septemper17, 2008

The stock market regulator yesterday approved IPO plans of two companies for raising Tk 45.50 crore from the capital market, and the entry of the sixth asset management company for managing funds.

The SEC issued an asset management licence to Race Asset Management Private Co Ltd, a joint-venture between non-resident and resident Bangladeshis, for managing funds including mutual fund. Paid-up capital of the entity is Tk 2.5 crore, he said.