Global Islami Bank (GIB) saw its share prices fall below the book value on its market debut yesterday, an unusual event in Bangladesh's stock market where companies usually register a rise, at least for the first few days. 

The private bank's stocks closed at Tk 9, down 10 per cent from its face-value of Tk 10.

It apparently reflects the poor confidence investors have on the lender, which was once headed by PK Halder, who, along with his associates, swindled around Tk 10,000 crore from four financial institutions, including Reliance Finance, according to the Anti-Corruption Commission.

Yesterday, only 11,817 shares of the GIB were traded in short bursts and for most of the trading period there was no buyer for the stock at Dhaka Stock Exchange.

"Investors' confidence on the banking sector is low while their stocks are also suffering for failing to get investors. This, along with the lack of confidence on this bank, has affected its share prices," said a top official of a merchant bank, preferring anonymity.

The number of shares of the bank is also high, so the price fell, he added.

Two other companies -- Navana Pharmaceuticals and Chartered Life Insurance Company -- which got listed in the last two months, registered an upward trend in their stock prices.

Both stocks closed over 9 per cent higher yesterday.

Initially operating as NRB Global Bank, the lender was renamed Global Islami Bank in December 2020.

It got the nod from the capital market regulator to raise Tk 425 crore in funds from the stock market by offloading 42.4 crore ordinary shares through an initial public offering (IPO).

The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO during a commission meeting held at its office in Dhaka in June.

LankaBangla Investments and Prime Bank Investments are the issue managers of the IPO.

With the IPO proceeds, the bank said it would invest in the SME sector, government securities and stock market.

Its weighted average earnings per share was Tk 1.08 for the last five years.

Following the direction of the central bank, the BSEC allowed the bank to allot 25 per cent shares for non-resident Bangladeshis.

The remaining 75 per cent of shares was divided -- 75 per cent going to general investors and 25 per cent to eligible investors.

The lender's profits dropped 18 per cent year-on-year to Tk 80 crore in the January-September period of 2021, according to the company's financial reports.