Express Insurance to make debut Aug 24
The insurer raises Tk 260.79m through IPO
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Express Insurance Ltd will make its debut trading on August 24 (Monday) on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange under ‘N’ category.
The DSE trading code for Express Insurance is “EIL” and DSE company code is 25,748.
Express Insurance, which received regulatory approval for going public from the Bangladesh Securities and Exchange Commission (BSEC) on February 18 this year, raised a capital worth Tk 260.79 million under fixed price method.
The non-life insurer offloaded more than 26.07 million ordinary shares at an offer price of Tk 10 each and raised the said amount.
The company’s revised IPO subscription date was June 14 to June 18. Later, the subscription period extended until July 2 with the securities regulator’s approval as many investors failed to apply for the IPO shares due to the ongoing Covid-19 pandemic.
Initially, the company’s IPO subscription date was April 13 to April 20, but subscription was suspended temporarily due to Covid-19 outbreak and the market closure.
The company’s IPO oversubscribed by six times as the company received about Tk 1.58 billion against IPO shares worth Tk 260.79 million, sources said.
Of the total IPO proceeds, the company will invest Tk 205.79 million in fixed deposit receipt (FDR) and treasury bonds, investment in capital market worth Tk 40 million and bearing the IPO related expense of Tk 15 million, as per the IPO prospectus.
As per the financial statement for the year ended on December 31, 2018, the company’s net asset value (NAV) was Tk 18.72 per share with revaluation reserve and earnings per share was Tk 1.12.
The company’s authorised capital is Tk 750 million and pre-IPO paid-up capital is Tk 391.18 million.
AAA Finance & Investment, IIDFC Capital and BLI Capital are working as issue managers of Express Insurance IPO.
Incorporated in March 2000, the Express Insurance is one of the fast-growing general insurance companies in Bangladesh. The company is carrying on all kinds of insurance, guarantee and indemnity business other than life insurance business.
Currently, 47 life and non-insurance companies are listed with the Dhaka Stock Exchange.