The initial public offering (IPO) subscription of Sena Kalyan Insurance begins today (Sunday), aiming to raise Tk 160 million from the capital market.
The IPO subscription of the general insurer, a concern of Sena Kalyan Sangstha (SKS) of Bangladesh Armed Forces, will continue until October 7.
The stock market regulator --- Bangladesh Securities and Exchange Commission (BSEC)--- approved the company's IPO proposal on August 11 to raise the said amount under the fixed price method to strengthen its business.
As per the regulatory approval, the insurer will issue 16 million ordinary shares at an offer price of Tk 10 each.
The minimum required investment for the general public will be Tk 20,000 as of September 23 in matured listed securities at market price.
The general investors would be allowed for applying minimum and maximum IPO subscriptions of Tk 10,000 only.
Each Eligible Investor (EI) who intends to submit an application 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 as on September 23.
The company will use the IPO proceeds for purchasing government securities, buying listed securities, investing in FDR in banks, buying office space and bearing the IPO expenses.
As per the financial statement for the year ended on December 31, 2020, the company's net asset value per share is Tk 21.09 (without revaluation) and the earnings per share (EPS) of Tk 3.93 while the weighted average EPS for the last five years was Tk 2.65.
The general insurance company will not be able to declare, approve and distribute dividends before its listing on the bourses, as per the BSEC condition.
AAA Finance & Investment is working as issue manager of the company's IPO process.
Currently, there are 51 insurers listed on the Dhaka Stock Exchange (DSE). Of them 38 are general and 13 are life insurers.
Meanwhile, IPO subscription of ACME Pesticides will begin on October 12 and continue till October 18.
ACME Pesticides which producing mainly agro-based products will raise a capital worth Tk 300 million from the capital market under the fixed price method.
The stock market regulator approved the company's IPO proposal on July 19 to raise the said amount by issuing 30 million ordinary shares at Tk 10 each.
The minimum and the maximum amount allowed for subscription for the general public would be Tk 10,000 only.
The company will utilise the IPO proceeds for the purpose of building and other construction, repay loans, acquisition of new machinery, electric installation and IPO expenses.
As per the financial statement for the year ended on September 30, 2020, the company's earnings per share (EPS) was Tk 0.48 while its net asset value (without revaluation) is Tk 16.84 per share.
Shahjalal Equity Management is the issue manager of the company.