The manager to the issues -- AAA Consultants and Financial Advisers -- said the firm has received over 1.06 lakh applications mostly due to a change in IPO rule which gives priority to applications of small investors.

Under the changed IPO rule, all the contenders are treated as applicants for a single market lot worth Tk 5,000.

The amendment has encouraged small investors to apply for stocks as their chances of winning shares have increased tremendously.

Earlier, their chances used to be far less as many investors resorted to the trick of applying in bulk amount knowing their chances of getting 'some' shares were guaranteed as the distribution used to be in proportion to application amount.

But to ensure shares to general investors, the Securities and Exchange Commission has brought the change that was overwhelmingly greeted by the investors.

Unlike previous IPOs, shares of Exim Bank will be traded directly under the central depository system (CDS) and settled electronically without physical transfer of shares. Exim Bank is the first to float IPO since the paperless share trading began on January 24 this year. It is also the first IPO issued this calendar year.

Capital market analysts say the tremendous response was also due to investors' confidence in bank stock which had been giving good return on investment for the past few years.

The EXIM Bank had approved 32 percent dividend to shareholders on April 21, 2003.

The bank invited public subscription from July 24, 2004 to July 28, 2004 seeking to raise Tk 40.80 crore by offering 31,38,750 ordinary shares at Tk 130 each including 30 percent premium.

Against the offered amount, the bank received applications worth over Tk 432 crore, oversubscribed by 10.59 times.

Established in 1999, EXIM Bank's authorised capital and paid-up capital now stand at Tk 100 crore and Tk 31.38 crore respectively. As of December 31, 2003, total assets of the bank stands at Tk 1,788 crore, total deposits at Tk 1,524 crore and advances at Tk 1,228 crore.

After tax and provisions, the bank earned a net profit of Tk 25.48 crore in 2003 and Tk 20.14 crore in 2002. Having branches in 29 locations, Exim bank is the 23rd bank that went public.