Sonali Life's IPO subscription opens May 30

FE REPORT | Wednesday, 28 April 2021

The IPO subscription of Sonali Life Insurance Company will open from May 30, aiming to raise Tk 190 million under the fixed price method.

The life insurer's initial public offering (IPO) subscription will be continued until June 3, according to the abridged prospectus of the company published on Tuesday.

The company's IPO subscription was supposed to open in March this year. However, its IPO subscription deferred in May after the company applied for the deferral.

The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC)- approved the company's IPO proposal on December 9, 2020.

As per the BSEC approval, the Sonali Life Insurance will raise a capital worth Tk 190 million under the fixed price method issuing 19 million ordinary shares at an offer price of Tk 10 each.

The company will invest the IPO proceeds in government Treasury bond, fixed deposit receipt (FDR) and stock market along with bearing the IPO expenses.

As per the audited financial statement for the year ended on December 31, 2019 the company's net asset value (NAV) per share is Tk 25.47 (without revaluation) and life insurance fund worth Tk 953.3 million.

ICB Capital Management and Agrani Equity & Investment Ltd are jointly working as issue managers of company's IPO process.

The authorised capital of Sonali Life Insurance, which was incorporated in Bangladesh on 7 July 2013, is Tk 1.0 billion.

Currently, its paid-up capital is Tk 285 million and its post-IPO paid-up capital will be Tk 475 million.

Currently, 50 insurance - both life and non-life - companies are listed on the Dhaka Stock Exchange.

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