Desh General Insurance will allocate 16 million ordinary shares among the successful applicants as the company's IPO lottery draw was held Wednesday.
The initial public offering (IPO) lottery event was held at 11:00am at The Lakeshore Hotel at Gulshan in Dhaka, officials said.
The non-life insurer raised Tk 160 million by issuing 16 million ordinary shares at face value of Tk 10 each under the fixed price method.
The result has already been published on the websites of the company, issue manager, Dhaka Stock Exchange and Chittagong Stock Exchange.
The company received a good response from the investors for its IPO shares as its subscription was held between February 14 and February 18 this year.
The company received a total subscription of Tk 6.37 billion against public issue of IPO shares worth Tk 160 million which is oversubscribed by 39.86 times.
The company received subscription from resident Bangladeshis Tk 4.80 billion, affected small investors Tk 456 million, non-resident Bangladeshis Tk 206 million, eligible investors, including mutual fund Tk 905 million, according to the final status of IPO.
The stock market regulator- Bangladesh Securities and Exchange Commission (BSEC), approved the insurer's IPO proposal on December 2, 2020.
As per the regulatory approval, the insurer will issue 16 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
The insurer will invest the IPO proceeds in the capital market, fixed deposits, treasury bonds and IPO related expenses.
According to the audited financial report for the year ending on 31 December, 2019, the earnings per share (EPS) of the company stood at Tk 1.36 while its net asset value (NAV) per share was Tk 11.62, without revaluation.
Prime Finance Capital Management is working as the issue manager of the company's IPO process.
Currently, 49 insurance companies are listed with the capital market -both life and non-life insurance.