The initial public offering (IPO) of Chartered Life Insurance Company opens for subscription today (Sunday), aiming to raise Tk 150 million from the capital market under the fixed-price method.
The new-generation insurer's IPO subscription period will close on September 29, according to its abridged prospectus published recently.
It received approval from the Bangladesh Securities and Exchange Commission (BSEC) on July 06 for raising the fund.
As per the regulatory approval, the company will issue 15 million ordinary shares at a face value of Tk 10 each.
The minimum and maximum amount required for the subscription by the general public, including non-resident Bangladeshis (NRBs), is Tk 10,000 only.
General public must have a minimum investment of Tk 50,000 in matured listed securities at the market price as on September 15 to qualify for the subscription. The amount is Tk 100,000 for the NRBs.
As per rules, each eligible investor (EI), who intends to submit applications, has to maintain a minimum investment of Tk 30 million at market price in listed securities while Tk 15 million for approved pension funds, recognised provident funds and approved gratuity funds.
Chartered Life will utilise the IPO proceeds for buying government treasury bonds, investing in the stock market and bearing the IPO expenses.
As per the actuarial valuation report for the year that ended on 31 December 2021, the company's total life fund grew to nearly Tk 352.17 million and total surplus was Tk 46.75 million.
AAA Finance & Investments, Trust Bank Investment and AB Bank Investment are jointly working as the issue manager for the IPO process.
Chartered Life is not allowed to declare, approve or distribute any dividend before listing with the bourse.
Currently, the company's paid-up capital is Tk 225 million and authorised capital Tk 2.50 billion, according to its website.
Meanwhile, the IPO subscription of Global Islami Bank will commence on October 16 and continue until October 20, aiming to raise Tk 4.25 billion.
Minimum required investment for the general public will be Tk 50,000 and for the NRBs Tk 100,000 as on October 04 in the matured listed securities at market price.
The fourth-generation private bank received approval for its IPO from the BSEC on June 15 this year.
It will issue 425 million ordinary shares with a face value of Tk 10 each under the fixed-price method.
Global Islami's IPO is going to be the fifth largest among the all sectors while it will be the second largest among banks after Union Bank's Tk 4.28 billion.
The lender will utilise its IPO proceeds for investing in small and medium enterprises (SMEs), buying government securities, investing in listed securities and meeting the IPO expenses.
LankaBangla Investments and Prime Bank Investment are jointly working as the issue manager for the IPO.
According to the financial statement until 30 September 2021, the bank's net asset value (NAV) per share (without revaluation) was Tk 14.42 and earnings per share (EPS) Tk 1.91 while the weighted average EPS for the last five years stood at Tk 1.08.
Global Islami Bank (former NRB Global Bank), which started its operation on 23 October 2013, is a full-fledged Islamic Shariah-based commercial bank.
Currently, 33 banks are listed on the capital market.