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The Financial Express

Union Insurance’s IPO subscription begins

| Updated: December 22, 2021 10:10:27


Union Insurance’s IPO subscription begins

The IPO subscription of Union Insurance opened today (Wednesday), aiming to raise Tk 193.60 million from the capital market under the fixed price method.

The general insurer’s IPO subscription through the electronic subscription system of the stock exchanges will continue until December 22 at 5:00 pm.

The securities regulator approved the general insurer’s IPO proposal on June 23 to raise Tk 193.60 million by issuing over 19.36 million ordinary shares at an offer price of Tk 10 per share.

The general public, who had maintained a minimum required investment of Tk 20,000 in matured listed securities at market price as of December 7, can apply through their respective brokerage house or merchant bank.

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 IPO proceeds will be invested in fixed deposit receipts (FDR), stock market investment, purchase of floor space and IPO related expenses.

According to the financial statements, which ended on December 31, 2020, the company’s net asset value (NAV) per share stood at Tk 17.39 while the basic earnings per share (EPS) stood at Tk 2.14.

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

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