The Financial Express

Union Insurance IPO subscription to open on December 15

Union Insurance IPO subscription to open on December 15

The initial public offering (IPO) subscription of Union Insurance Company Ltd will begin December 15, aiming to raise Tk 193.60 million from the capital market.

The subscription of the company's shares through the electronic subscription system of the stock exchanges will be continued until December 22, according to the company's abridged prospectus published on Wednesday.

The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the company's IPO proposal on June 23 to raise Tk 193.60 million under the fixed price method.

As per the regulatory approval, the general insurer will issue over 19.36 million ordinary shares at an offer price of Tk 10 per share.

Minimum required investment for the general public will be Tk 20,000 in matured listed securities at market price. Minimum and maximum amount allowed for subscription for the general public is Tk 10,000.

Each Eligible Investor (EI) who intends to submit application 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 IPO proceeds will be invested in fixed deposit receipts (FDR), in the stock market investment, purchase of a floor space and IPO related expenses, according to the prospectus.

According to the financial statements, ended on September 30, 2020, the company's net asset value (NAV) per share stood at Tk 16.02 (with revaluation), while the earnings per share (EPS) was Tk 0.93.

Sonar Bangla Capital Management Ltd is acting as the issue manager for the company's IPO process.

Union Insurance Company started its journey in Bangladesh as a public limited company in August 2000. Presently, the insurer's paid-up capital is Tk 290.4 million and authorized capital is Tk 1.0 billion.

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