The stock market regulator today gave go-ahead to Union Bank to raise Tk 428 crore from the public, which will be the largest initial public offering (IPO) in the banking sector.

Among all sectors, Union Bank's IPO is going to be the fourth largest after Robi Axiata's Tk 523 crore, Grameenphone's Tk 486 crore and Mobil Jamuna's Tk 460 crore.

Bangladesh Securities and Exchange Commission approved the Union Bank's proposal to go public at a meeting chaired by its chairman, Prof Shibli Rubayat Ul Islam.

Union Bank would issue 42.80 crore ordinary shares at a face value of Tk 10, the BSEC said in press release.

The bank would spend the IPO proceeds to finance to SMEs, buy government securities and stocks from the capital market.

Its weighted average earnings per share in the last five years was Tk 1.82, according to the press release.