IPO subscription of Express Insurance now start June 14
The public subsection of Express Insurance Ltd now will begin from June 14 as the insurer announced fresh date for IPO subscription on Wednesday.
The IPO subscription for shares of the non-life insurer by the eligible investors through electronic subscription system was supposed to begin on April 13 and close on April 20. But they temporally suspended the IPO subscription due to government holidays.
The trading and settlement activities on the bourses remain suspended since March 26 to May 30 in line with the government holidays.
"As the government lifted the general holiday, the Bangladesh Securities and Exchange Commission has consented to reschedule the IPO subscription which will be started on June 14 and continue until June 18," said the company in a announcement on Wednesday.
The non-life insurer will raise a fund worth Tk 260.79 million from the capital market using the fixed price method.
The securities regulator approved the initial public offering proposal of the company on February 18, this year.
As per the approval, the insurer will offload more than 26.07 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company's IPO shares.
For non-resident Bangladeshi (NRB) and foreign applicants, the required amount (per lot) for subscription is US$ 59.39 or GBP 45.60 or EUR 52.39.
Institutional investors who intend to participate in the electronic subscription system of the company's IPO shares shall require maintaining a minimum investment of Tk 10 million only at market price in the listed securities, as per the BSEC decision.
The company will invest the IPO fund in fixed deposit receipt (FDR) and treasury bonds worth Tk 205.79 million, investment in capital market worth Tk 40 million and bearing the IPO expenses of Tk 15 million.
As per the financial statement for the year ended on December 31, 2018 the company's net asset value (NAV) is Tk 18.72 per share with revaluation reserve, while the value is Tk 16.65 without revaluation reserve.
The company's authorised capital is Tk 750 million and pre-IPO paid-up capital is Tk 391.18 million.
AAA Finance & Investment, IIDFC Capital and BLI Capital are working as issue managers of Express Insurance.