The public subscription of Express Insurance is set to begin on April 13 for raising a fund worth Tk 260.79 million from the public.
The initial public offering (IPO) subscription for shares by the eligible investors through electronic subscription system of the insurer will continue until April 20.
The securities regulator-- Bangladesh Securities and Exchange Commission-- approved the IPO 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.
The company will invest the IPO fund in fixed deposit receipt (FDR) and treasury bond 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.
AAA Finance & Investment, IIDFC Capital and BLI Capital are working as issue managers of Express Insurance.
The company's' authorised capital is Tk 750 million and pre-IPO paid-up capital is Tk 391.18 million.
The securities regulator also imposed the condition of investing at 20 per cent of the capital, raised through IPO, in the capital market.
Delta Hospital: The bidding to determine the cut-off price for IPO shares of Delta Hospital through electronic subscription system will begin on March 22.
The share bidding will continue until 5:00pm on March 25, officials said.
And the valuation report submission period for the eligible investors will start at 10:30am on March 29 and close at 10:30am on March 31.
Each eligible investor (EI) who intends to participate in the electronic bidding for the company's shares requires maintaining a minimum investment of Tk 10 million in the listed securities at market price as on March 11, 2020.
On February 11, BSEC allowed the Delta Hospital to explore the cut-off price for its shares -- a requirement for going public under the book building method.
As per the regulatory approval, the company will raise a capital worth Tk 500 million.
The eligible investors and the mutual funds are allowed to purchase 40 per cent and 10 per cent shares respectively at the cut-off price.
General public and non-resident Bangladeshis (NRBs) will get 40 per cent and 10 per cent of shares respectively at a 10 per cent discount on the cut-off price through IPO lottery.
The company will utilise the IPO proceeds for buying capital machinery, repay bank loans and bear the IPO expenses.
According to the financial statement of the company for the year ended on June 30, 2019, the net asset value (NAV) per share was Tk 45.84 with asset revaluation and Tk 16.62 without asset revaluation.
The basic earnings per share (EPS) stood at Tk 2.10 and the weighted average EPS at Tk 1.91.
Prime Finance Capital Management Ltd. is the issue manager while ICB Capital Management Ltd. will act as the registrar of the company's IPO process.
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