The initial public offering (IPO) subscription of Crystal Insurance Company Ltd is set to open on November 10, aiming to raise Tk 160 million from the capital market.
The IPO subscription for shares of the non-life insurer by the eligible investors through electronic subscription system under the fixed price method will be continued until November 16, according to the company’s IPO prospectus.
The securities regulator-– Bangladesh Securities and Exchange Commission (BSEC)-- on September 23 approved the non-life insurer’s proposal to raise the fund from the capital market through initial public offering.
As per the stock market regulator approval, the company will issue 16 million ordinary shares with an offer price of Tk 10 each under the fixed price method.
Each Eligible Investor (EI) who intends to submit application shall maintain a minimum investment of Tk 10 million only at market price in listed securities as per the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the exchange regarding the holding of EIs in the listed securities and the exchange shall ensure compliance in this regard.
A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company’s IPO shares.
The proceeds from the IPO will be used for investment in FDR & Treasury bond, capital market and to meet IPO related expenses.
The non-life insurer’s authorised capital is Tk 1.0 billion and pre-IPO paid-up capital is Tk 240 million.
According to the financial statement ending June 30, 2019, the company’s net asset value (NAV) per share was Tk 24.42, while earnings per share (EPS) were at Tk 2.92.
Sonar Bangla Capital Management Ltd is acting as the issue manager for the company’s IPO process.
Crystal Insurance Company is one of the leading general insurance (Non Life) company in private sector in Bangladesh. The company transacts a wide range of general insurance business in Bangladesh and expertise in the field with sound and stable financial position.