Subscription of Pragati Life’s rights to begin Sept 24

Record date for entitlement of rights share on Sept 7


FE ONLINE REPORT | Published: August 18, 2020 12:03:48 | Updated: August 19, 2020 12:08:53


Subscription of Pragati Life’s rights to begin Sept 24

Rights shares subscription of Pragati Life Insurance is set to begin September 24, aiming to raise Tk 230.27 million through rights issuance.

The subscription period for the life insurer will be continued until October 20, 2020, according to an official disclosure on Tuesday.

The record date for entitlement of rights share is September 7.

The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price.

The stock market regulator approved Pragati Life Insurance’s application to raise Tk 230.27 million through rights issue on August 13.

The purposes of issuance of right shares are to cope with the business growth and strengthen the capital base of the company as well as fulfill the regulatory requirement.

The life insurer, which was listed on the Dhaka bourse in 2006, will issue more than 15.35 million rights shares of Tk 15 each, including Tk 5.0 as a premium to raise the said amount.

The company will issue one rights share against existing one share (1R:1).

The company has decided to raise paid-up capital by issuing rights shares to fulfill the regulatory requirement in line with the Insurance Act-2010.

The company will also invest the rights offer amounts in government treasury bonds, and in fixed deposits at banks and financial institutions.

The company reported net asset value per share of Tk 37.29 as on December 31, 2018, according to the rights issue documents.

LankaBangla Investment Ltd is the issue manager of the rights issue.

Each share of the life insurer closed at Tk 135.10 on Monday at DSE.

Its share traded between Tk 73.30 and Tk 169.70 in the last one year.

Recently, the board of directors of the company declared 20 per cent cash dividend for the year ended on December 31, 2019.

In 2018, the company disbursed 15 per cent cash and 15 per cent stock dividend.

The company’s paid-up capital is Tk 153.52 million and authorised capital is Tk 250 million while total number of securities is 15.35 million.

The sponsor-directors own 41.32 per cent stake in the company, while the institutional investors own 26.53 per cent and the general public 32.15 per cent as on February 29, 2020, the DSE data shows.

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