The number of IPO applications for Sonali Life Insurance Company has dropped drastically in the newly introduced pro rata basis allotment. But the overall subscription in terms of amount was oversubscribed significantly.
Sonali Life Insurance, a fourth generation life insurer, floated shares worth Tk. 190 million. The subscription ended on June 03 last. Sonali Life is the first company where the new pro rata was applied.
The total number of applications was 367,250, down by more than 63 per cent than that of the usual number of applications.
On the other hand, the total amount received for the share allotment stood at Tk. 7.3 billion.
The subscription in the general category including affected small investors and NRBs was oversubscribed by 54.64 times.
On the other hand, eligible investor category, it is oversubscribed by 14.15 times.
Under the new system, the applicant has to have Tk. 20,000 as equity investment and Tk 10,000 as subscription fee for a lot. They can apply for as much as five times of the Tk. 10,000.
The general IPO received from resident Bangladeshi stood at 294,565. Affected small investors application was 53366 and NRBs 18608. EIs applications were 711.
The allocation of shares who applied for Tk. 10,000 will get 17 shares. Allotment of shares for Tk, 20,000, Tk. 30,000, Tk 40,000 and Tk. 50,000 will get 34, 51, 68 and 86 shares respectively.