The public subscription of Express Insurance Ltd has been extended until July 2 with the permission of securities regulator, officials said.
The IPO (initial public offering) subscription of the non-life insurer, which took place between June 14 and June 18, will now continue until July 02, according to an official announcement on Monday.
Due to poor response from the investors in its IPO subscription within the scheduled time, the company applied for time extension, said an official of the securities regulator.
The non-life insurer will raise a fund worth Tk 260.79 million from the capital market using the fixed price method.
The securities regulator approved the initial public offering proposal of the company on February 18 of this year.
As per the approval, the insurer will offload more than 26.07 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
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.
For non-resident Bangladeshi (NRB) and foreign applicants, the required amount (per lot) for the subscription is US$ 59.39 or GBP 45.60 or EUR 52.39.
Institutional investors who intend to participate in the electronic subscription system of the company’s IPO shares shall require maintaining a minimum investment of Tk 10 million only at the market price in the listed securities, as per the BSEC decision.
The company will invest Tk 205.79 million of the IPO fund in fixed deposit receipt (FDR) and treasury bonds, Tk 40 million in capital market and Tk 15 million in bearing the related expenses.
As per the financial statement for the year ended on December 31, 2018, the company’s net asset value (NAV) is Tk 18.72 per share with revaluation reserve while the value is Tk 16.65 without revaluation reserve.
The company’s authorised capital is Tk 750 million and pre-IPO paid-up capital is Tk 391.18 million.
AAA Finance & Investment, IIDFC Capital and BLI Capital are working as issue managers of Express Insurance.
Incorporated in March 2000, the Express Insurance is one of the fast-growing general insurance companies in Bangladesh. The company is carrying on all kinds of insurance, guarantee and indemnity business other than life insurance business.
Currently, 47 life and non-insurance companies are listed with the Dhaka Stock Exchange.