The stock market regulator has approved the IPO (initial public offering) proposal of Sonali Life Insurance Ltd which will raise a capital worth Tk190 million under the fixed price method.
The securities regulator also approved a mudaraba perpetual bond of Tk 6.0 billion in favour of First Security Islami Bank Limited.
The approvals came Wednesday at a meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC) presided over its chairman Prof. Shibli Rubayat Ul Islam.
As per the BSEC approval, Sonali Life Insurance will offload 19 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
The company will invest the IPO proceeds in government Treasury bond, fixed deposit receipt (FDR) and stock markets along with bearing the IPO expense.
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 Ltd and Agrani Equity & Investment Ltd are jointly working as issue managers of company's IPO process.
The IPO subscription date will be fixed in March 2021 for the interest of investors, the BSEC said in a statement.
Eligible investorswho intend to participate in the electronic subscription system of the company's IPO shares shall require maintaining a minimum investment of Tk 5.0 million for pension funds and provident funds while other eligible investors shall Tk 10 million only at market price in the listed securities for five days before the beginning of IPO subscription, as per the BSEC decision.
Currently, 48 insurance - both life and non-life - companies are listed on the Dhaka Stock Exchange.
At Wednesday's meeting, the securities regulator also accorded its consent to let the First Security Islami Bank to issue unsecured, contingent-convertible, floating rate, mudaraba perpetual bond worth Tk 6.0 billion.
The purpose of the bond issue is to strengthen the capital base Additional Tier-1 of the bank.
Per unit price of the bond will be Tk 1.0 million and the coupon rate is 6.0 per cent to 10 per cent.
The units will be sold to government financial institutions, mutual funds, insurance companies, listed banks, and other eligible investors through private placements.
Green Delta Insurance Company Ltd will act as the Trustee and City Bank Capital Resources arranger for the Bond.
The stock market regulator has also slapped a fine on two brokerage firms of the Chittagong Stock Exchange (CSE) - International Securities Company Ltd and North West Securities Ltd -- worth Tk 0.2 million (2.0 lac) each for breaching securities rules.
At Wednesday's meeting, the BSEC also scrapped the Securities and Exchange Rules, 1987 and approved Bangladesh Securities and Exchange Commission (Transaction Manners of Stock-Broker or Stock-Dealer, Affairs of the Exchange and Issuer of listed Securities) Rules, 2020 after public opinion.