The securities regulator has approved the IPO (initial public offering) proposal of Meghna Insurance Company Ltd which will raise a capital worth Tk 160 million.
Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the company's IPO proposal at a meeting held at the BSEC office.
At the meeting, the BSEC also approved two proposals of perpetual and zero coup bond to be issued by Bank Asia and National Polymer Industries respectively.
As per the BSEC approval, Meghna Insurance Company will raise Tk 160 million under fixed price method issuing 16 million ordinary shares at an offer price of Tk 10 each.
The company will utilise the fund for the purpose of investing into 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 last five years was Tk 0.56.
Asian Tiger Capital partners, Prime Bank Investment and UCB Investment are working as issue managers of Meghna Insurance Company.
As per the BSEC condition, the company will not be allowed to recommend any dividend before its listing with the bourses.
At Tuesday's meeting, the securities regulator approved the proposal of raising Tk 5.0 billion by Bank Asia through coupon bearing, conditional and convertible perpetual bond.
Of Tk 5.0 billion, Tk 4.5 billion will be raised issuing the units of the bond through private placement, while the remaining Tk 500 million will be raised through public offer.
The bank will utilise the fund to strengthen its additional tier-I capital base.
National Polymer Industries will raise Tk 3.0 billion issuing zero-coupon bond having with a tenure of five years.
The bonds are transferable, redeemable, non-convertible, and unsecured.
The bond having an offer price of Tk 408.95 per unit will be issued through private placement.
The securities regulator approved the company's proposal of bond subject to personal guarantee of its directors.
At Tuesday's meeting, the securities regulator also approved the draft prospectus of Mercantile Bank Unit Fund, an open-end mutual fund.
The initial size of the fund is Tk 500 million. Of Tk 500 million, Tk 50 million has been contributed by sponsors while the remaining Tk 450 million will be collected through sales of units of the fund at an offer price of Tk 10 each.
MBL Asset Management is working as the fund's asset manager, while ICB Capital Management is the trustee.
