ICB sells its entire holding of Islami Bank

The Investment Corporation of Bangladesh (ICB) has sold its entire shareholding of the Islami Bank Limited for Tk109 crore.

The shares’ trading was executed through the block market of the Dhaka Stock Exchange (DSE) on 23 May.

According to Islami Bank data, the ICB holds 3,34,68,956 shares of the bank, which was 2.07% of the total shares.

According to the DSE, the ICB sold shares at Tk32.6 each but it could not confirm the identities of the buyers.

As it sold its entire stake, the ICB has withdrawn Md Abu Taher Md Ahmedur Rahman, a nominated director from the ICB on the board of Islami Bank.

An official of ICB, on condition of anonymity, told The Business Standard, “We are facing a liquidity crisis. Most of the funds are stuck in the capital market due to the imposition of floor price.”

“That is why, reinvesting in the market, the ICB has decided to sell the entire holding of the bank”, he added.

In a report on shareholding of the sponsor-directors, foreigners, institution and shareholders who holds 5% or more for the month of May, the Islami Bank said, the ICB withdrew the directorship in the board, and the same was approved by the board of directors in its meeting held on 31 May.

Earlier, on 27 April, the United Arab Emirates-based BTA Wealth Management bought over 2% stake — 3.42 crore units of shares — of the bank at a cost of Tk111 crore as the leading private-sector lender has been in a struggle for liquidity shortage.

These shares were also traded at Tk32.6 each in the block market, according to the DSE.

Source: The Business Standard
Shopping Basket