Capitec Grameen mutual fund subscription from Sep 24

Capitec Grameen Bank Growth Fund, a closed-end mutual fund, is going to get listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) issuing units through initial public offering (IPO). 

Mutual funds pool money from multiple investors and channel it into securities such as stocks, bonds and other assets. Closed-end mutual funds have a limited lifetime and are listed with the stock exchanges. Subscriptions for the IPO will be accepted from September 24 to October 1.

The closed end mutual fund will be of Tk 200 crore and the face value of each unit will be Tk 10. The sponsor of the fund is Grameen Bank, the largest microcredit institution in the world.

The asset management company said Tk 100 crore of the fund will be raised from general investors through an IPO. The state-run ICB is the trustee and custodian of the fund.

Capitec Asset Management Limited, manager of the mutual fund, organised several roadshows around the country to highlight various aspects of this fund among prospective investors.

One of the events was held at Dhaka Club Ltd on Tuesday, which was addressed by M Mahfuzur Rahman, the company's managing director, and Md Kismatul Ahsan, chairman of the Investment Corporation of Bangladesh.

Capitec Grameen Bank Growth Fund is coming to the market at a favourable time and if the investment is made properly, it will be possible to ensure good returns from here, said Rahman.