Photo: Collected
BTA Wealth Management has bought 3.42 crore shares of the private Islami Bank Bangladesh Limited making the maiden investment in the country following the commitment made in Dubai Road show.
According to the Dhaka Stock Exchange, on April 27, the company bought shares worth Tk 1,11 crore at a price of Tk 32.6 each in the block market which makes the company part of the bank’s ownership.
Meanwhile, DSE reported that another 3.32 crore shares of Islami Bank Bangladesh were sold at Tk 1,08 crore in the block market last Tuesday.
“BTA Wealth is an established asset management company. The company has shown interest in investing in the Bangladesh capital market at the BSEC Road Show in Dubai,” BSEC Chairman Professor Shibli Rubaiyat Ul Islam told The Daily Messenger.
After that they experimentally invested in Islamic banks. Dubai International Financial Center’s firm BTA Wealth has big investment plans in the Bangladesh market, he added.
According to Bangladesh Securities and Exchange Commission (BSEC), BTA expressed interest in investing in Bangladesh during the Dubai Road Show. Following this, the company wants to buy shares and ownership of Islami Bank.
Seeking anonymity, a top Islami Bank official told The Daily Messenger that they do not have any official information about the change in the bank’s ownership. However, anyone who wants to buy shares from the capital market has the opportunity to become owners of the bank.
Currently Saudi Arabia-based Al-Raji Company for Industry and Trade, Islamic Development Bank and Arabas Travel and Tourist Agency jointly have 22.04 per cent shares in the paid-up capital of Islami Bank Bangladesh. Besides, foreign investors own another 20.24 per cent shares of the bank.
According to BTA’s website, the company formed an investment fund named ‘BTA Tiger Fund’ in 2022 to invest in emerging markets.
BTA Wealth was established in 2016 headquartered at the Emirates Financial Tower in Dubai. BTA Wealth Management has no other investments in Bangladesh as of now.
Dubai International Financial Center is an important financial hub for the Middle East, Africa and South Asia. According to the website, it consists of 72 countries with a population of approximately 3 billion and a GDP of $8 trillion.
It is reported that four Middle East-based sponsors - Bahrain Islamic Bank, Islamic Development Bank, Kuwait Finance House and Dubai Islamic Bank, have sold some of their stake in Islami Bank in 2015.
According to the audited financial report of the bank, profit increased by 28 per cent to Tk 616 crore in 2022 compared to the previous year.
Last year, the bank’s earnings per share was Tk 3.84, which was Tk 2.99 in the previous year. The bank declared a 10 per cent cash dividend for the shareholders in 2022.
TDM/SD
