IDLC Investments Limited (IDLCIL) is a merchant bank, headquartered in Dhaka, Bangladesh. The company is a wholly owned subsidiary of IDLC Finance Limited (IDLC), the country’s largest Non-Banking Financial Institution, which was created jointly by, International Finance Corporation, German Investment Corporation, Korea Development Bank, Aga Khan Fund for Economic Development and other local and international institutions.
IDLCIL started as the merchant banking division of IDLC in 1999. Later in 2010, it emerged as a separate company as per the requirement of Bangladesh Securities and Exchange Commission. The firm provides Investment banking, Portfolio management, Margin loans and Securities research services to its clients, which include both corporations and individuals.
Investment banking operations of IDLC commenced in 1999, as Merchant Banking Division with the primary activity being underwritingof shares. The division managed its first Initial Public Offering (IPO) in 2003, by taking Bank Asia public. The company entered into portfolio management business by offering non-discretionary fund management services in 2004 and discretionary fund management services in 2007. It was the first issue manager to exercise Greenshoe dilution option, in IPO of Marico Bangladesh Ltd., a local subsidiary of Marico, in 2009. In 2010, it emerged as the first ever issue manager in Bangladesh to manage IPO under Book Building method by raising equity worth of BDT 1,656 million (US$23 million) for RAK Ceramics (Bangladesh) Limited, a local subsidiary of RAK Ceramics.
The division was transformed into a new company, IDLC Investments Limited, in 2010, in compliance to a requirement of Bangladesh Securities and Exchange Commission.
- Investment Banking: Investment Banking team offers services for raising capital, both debt and equity, from the market, matching the unique needs and constraints of the corporate clients. Investment Banking operations focus on the following major services-
IPO and Related Services
- Initial Public Offering
- Rights issue
- Private placement and
- capital raising
Corporate Advisory Services
- Mergers and Acquisitions
- Business restructuring
- Business valuation
The company has helped raise BDT 34,358 million (US$184 million) through its issue management operations, as of 2017.In recent times, the company has worked as the issue manager of the IPO of Runner Automobiles Limited Runner Automobiles, pioneer 2 and 3 wheeler manufacturer and exporter while another IPO of Popular Pharmaceuticals Limitedhas received regulatory approval. The investment bank has managed eleven IPOs, Rights Issue and Repeat Public Offering (RPO) in different sectors till date and is working on a number of IPO-bound companies, rights issue and corporate advisory deals.
IDLC Investments was corporate advisor in Robi-Airtel merger as well as managed the mergers of Ananta Apparels Limited with four other companies as corporate advisor. It provided advisory service to Bangladesh Honda Private Limited for capital raising amounting to BDT 2,989 million (US$ 30 million) to a foreign investor in recent times. The company was also corporate advisor of several other companies in various sectors in foreign equity injection. Currently, the company is working on two mergers, one in the bakery and the other in the agrovet industry, business restructuring and placement of a pharmaceutical company.
- Portfolio Management: The firm provide portfolio management services to its clients, by offering two products. Discretionary Portfolio Management service is targeted towards high net worth individuals, with tailored investment management solutions. Easy Invest, a Systematic Investment Plan is targeted towards mass people, encouraging systematic savings and investment in the capital market.
- Margin Loan: The company also provides non-discretionary margin loan products to its clients. The size of margin loan basket stood at BDT 1,977 million (US$24 million) as of 2017.
Awards and recognitions
The Euromoney Awards for Excellence: IDLC Investments Limited received Euromoney Awards for Excellence 2018: Bangladesh’s Best Investment Bank
- ^“IDLC Finance Limited”. FMO: Entrepreneurial Development Bank.
- ^“Marico doubles IPO”. The Financial Express. Dhaka. Retrieved 19 November 2014.
- ^“Financial Express :: Financial Newspaper of Bangladesh”. The Financial Express. Dhaka. Retrieved 19 November 2014.
- ^“RAK Ceramics takes on first IPO under book building”. The Daily Star. Retrieved 19 November 2014.
- ^“Annual Report 2017” (PDF). Idlc.com. p. 148.
- ^“BSEC approves Runner IPO, Tk1400 crore in bonds for 2 banks”.
- ^“BSEC approves proposal of determining cut-off price of Popular Pharma”.
- ^“Annual Report 2017” (PDF). Idlc.com. p. 88–89.
- ^“IDLC Investments wins Euromoney Awards for Excellence”.
- ^“Euromoney Country Awards for Excellence 2018: Asia”.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.