The public subscription for Express Insurance shares has been delayed further as the stock market remained shut in line with the government holidays.
The government has extended the ongoing shutdown until May 30 as the deadly virus goes virulent.
The non-life insurer will raise a fund worth Tk 260.79 million from the capital market using the fixed price method.
The initial public offering (IPO) subscription for shares of the company by the eligible investors through electronic subscription system was supposed to begin on April 13 and close on April 20.
The company officials said IPO subscription has been suspended as the government extended the general holiday until 30 May.
They said the revised date for the IPO subscription will be announced through daily newspapers after getting approval for fresh date from the Bangladesh Securities and Exchange Commission.
Issue manager sources, however, said the public subscription of the insurer is likely to begin from 10th working days after the resumption of trading in the bourses.
The trading and settlement activities on the bourses remain closed since March 26 in line with the government holidays.
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 use 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.
Incorporated in March 2000, the Express Insurance Ltd is one of the fast growing general insurance companies in Bangladesh. The company is carrying on all kinds of insurance, guarantee and indemnity business other than life insurance business.
Currently, a total of 47 life and non-insurance companies are listed on the Dhaka Stock Exchange.
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