Demand for Islami Bank shares on the rise among foreign investors

An increased number of foreign investors have been lured to buy Islami Bank’s shares due to its good performance and strong financial strength.

Islami Bank’s stock made a record as the shares of the financial institution worth Tk 525 crore were traded at the Chittagong Stock Exchange (CSE) on Tuesday.

According to the CSE website, investors traded a total of 16.1 crore shares which was 9.99 percent of the bank's total shares.

The shares were traded at Tk 32.3 each, which was both the opening and closing prices of the bank's stock.

IBBL was ranked the 904th in 2020 ranking of The Banker, a world-renowned UK-based financial magazine. IBBL became the first bank in the country to be included in the list of the world's best banks.

In July, Islami Bank appointed Abu Sayeed Mohammad Quasem, nominated by Armada Spinning Mills, Showkat Hossain, nominated by Kingsway Endeavors and Jamal Mostafa Chowdhury, nominated by Uniglobe Business Resources, as shareholder directors.

The three organisations jointly hold 11.07 percent shares of the Islami Bank.

In June, Ahsanul Alam, son of S Alam Group Chairman Saiful Alam Masood, was appointed as a shareholder director of the bank as a nominee of JMC Builders. Currently, he is the chairman of the bank.

At present, Islami Bank has two foreign directors named Yousif Abdullah A Al-Rajhi and Mohamad Al-Midani nominated by Saudi Arabia-based Al-Rajhi Co.

However, the United Arab Emirates-based BTA Wealth Management, one of the top buyers to be identified, bought over a 2 percent stake in the bank.

According to the DSE, sponsors and directors of the bank hold 42.98 percent share, institutions 13.58 percent, foreign investors 34.49 percent and the public 8.95 percent as of July.