Trust Islami Life's IPO subscription to open Monday

The initial public offering (IPO) subscription of Trust Islami Life Insurance will begin Monday (April 3), aiming to raise Tk 160 million from the stock market under the fixed price method.

The life insurer's IPO subscription through the electronic subscription system of the stock exchanges will continue until April 9, officials said.

Trust Islami Life Insurance's IPO is the second IPO in 2023 after Midland Bank which already raised Tk 700 million under the fixed price method and made its trading debut on March 27.

The new generation life insurer received approval from the Bangladesh Securities and Exchange Commission (BSEC) on January 25 for raising the said amount.

As per the regulatory approval, the company will issue 16 million ordinary shares at a face value of Tk 10 each.

The minimum and maximum amount allowed for subscription for the general public, including non-Resident Bangladeshi (NRB), would be Tk 10,000.

The minimum required investment for the general public will be Tk 50,000 and for the NRB will be Tk 100,000 in matured listed securities at market price as on March 23.

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 is for approved pension funds, recognised provident funds and approved gratuity funds.

The company will utilise the IPO proceeds for buying government treasury bonds (Tk 36.48 million), investing in the secondary stock market (Tk 30.40 million), and fixed deposit receipts (Tk 85.12 million) and the remaining bearing the IPO expenses.

According to the actuarial valuation report for the year ended on 30 June 2022, its total surplus fund is Tk 7.32 million. The net asset value per share of the company was Tk 10.30 and earnings per share was Tk 0.30 for the year ended on June 30, 2022.

The authorised capital of the life insurer is Tk 1.0 billion and the pre-IPO paid-up capital is Tk 240 million.

BMSL Investment Ltd is working as the issue manager of Trust Islami Life Insurance for its IPO process.

The life insurer is not allowed to declare, approve or distribute any dividend before listing with the stock exchanges, as per BSEC condition.

Established in February 2014, Trust Islami Life Insurance is engaged in life insurance, group insurance, and micro-insurance businesses in Bangladesh.

Presently 56 insurers - both life and non-life - are listed with the country's capital market.

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