January 22, 2019 (MLN): BMA Capital Management Limited has announced the Initial Public Offering (IPO) of United Bank Limited’s Term Finance Certificates (TFCs), to be held on 28th and 29th January.
The size of the IPO is Rs 1 billion (10% of total issue size of Rs 10 billion), having a rate of return of 3-Month KIBOR + 1.55% p.a. Furthermore, investors can make minimum investment of Rs 5,000, and in multiples thereof.
UBL being the second largest private sector bank in Pakistan in terms of total assets, has received overwhelming demand from institutions in PKR 9 billion pre-IPO portion of the Issue.
Having a return on equity (RoE) in the 20-26% range in the last 5 years and deposits market share of 9.6%, the bank has maintained consistent dividend pay-outs averaging at around 60% since 2012.
Moreover, UBL has the highest credit rating of “AAA/A-1+” by JCR-VIS, along with the highest TFC rating of AA+ by the same credit rating agency, as compared to similar instruments.
