The initial public offering (IPO) subscription of Meghna Insurance Company will commence from May 11, aiming to raise Tk 160 million from the capital market, officials said.
The IPO subscription of the general insurer through the electronic subscription system of the stock exchanges will be continued until May 18.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the company’s IPO proposal on March 1, to raise Tk 160 million under the fixed price method.
As per the regulatory approval, the insurer will issue 16 million ordinary shares at an offer price of Tk 10 per share.
The minimum required investment for the general public will be Tk 20,000 in matured listed securities at market price. The minimum and maximum amount allowed for subscription for the general public is Tk 10,000.
Each Eligible Investor (EI) who intends to submit applications through the electronic subscription system (ESS) shall maintain a minimum investment of Tk 5.0 million for approved pension funds, recognised provident funds and approved gratuity funds and other Els of Tk 10 million at market price in listed securities.
The company will utilise the fund for the purpose of investing into the capital market, purchasing government securities, investing in fixed deposits along with catering the IPO expenses.
The company has reported its net asset value (NAV) of Tk 16.41 (without revaluation) as per the audited financial statement for the year ended on March 31, 2021.
The earnings per share (EPS) was Tk 1.83 for a period of three months ended on March 31, 2021 while the weighted average EPS of the last five years was Tk 0.56.
The company’s pre-IPO paid-up capital is Tk 240 million, while the authorised capital is Tk 1.0 billion.
Asian Tiger Capital Partners, Prime Bank Investment and UCB Investment are jointly working as issue managers of Meghna Insurance’s IPO.
As per the BSEC condition, the company will not be allowed to recommend any dividend before its listing with the bourses.
The principal business of Meghna Insurance is to provide all kinds of insurance, guarantees, and indemnities, other than life insurance.
It also provides fire, marine, engineering, motor, and miscellaneous other insurance.
