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The IPO subscription of Sonali Life Insurance, the first company under the newly introduced pro-rata basis, will begin tomorrow (Sunday), aiming to raise Tk 190 million under the fixed price method.
The life insurer's initial public offering (IPO) subscription through electronic subscription system (ESS) under the fixed price method will be continued until June 3, officials said.
Sonali Life is the first company whose IPO shares will be allocated on the newly introduced pro-rata basis instead of lottery system.
The IPO shares distribution on pro-rata basis allows every applicant to get shares which came into effective from April 1 of this year.
Minimum required investment for general public will be Tk 20,000 as on May 19, 2021 in matured listed securities at market price as per latest public issue rules.
Minimum and maximum amount allowed for subscription for general public would be Tk 10,000 and 50,000 respectively.
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 statements 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 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.
The company's pre-IPO paid-up capital is Tk 285 million and its post-IPO paid-up capital would be Tk 475 million.
Currently, 50 insurance companies - 38 non-life and 12 life insurers are listed with the Dhaka bourse.
Baraka Patenga Power: The IPO subscription of Baraka Patenga Power will open on June 13 and continue until June 17. The company will raise Tk 2.25 billion under the book- building method.
Baraka Patenga will be the second company whose IPO shares will be allocated on the newly introduced pro-rata basis instead of lottery system.
Minimum required investment for general public is Tk 20,000 as on June 3, 2021 in matured listed securities at market price as per latest public issue rules.
Minimum and maximum amount allowed for subscription for general public would be Tk 10,000 and 50,000 respectively.
Earlier the company completed electronic bidding and explored its cut- off price of shares - a requirement for going public under the book building method.
The cut-off price of shares of company has been fixed at Tk 32 each through electronic bidding by eligible investors.
The general investors will get its IPO shares at Tk 29 each, a 10 per cent discount on the cut-off price, as per the book-building method.
Baraka Patenga Power will raise Tk 2.25 billion from the capital market under the book-building method by issuing total 73,770,488 ordinary shares.
Of the IPO proceeds, more than Tk 1.44 billion will be invested in two of its subsidiaries--Karnaphuli Power and Shikalbaha Power, partial repay long-term bank loans and bear the expenses of the IPO process.
Subsidiaries of the Baraka Patenga - Karnaphuli Power and Baraka Shikalbaha Power have already started commercial operation after implementing two (HFO) based IPP (Independent Power Producer) power plants having generation capacity of 110MW and 105MW respectively.
Baraka Patenga Power holds 51 per cent shares of both the subsidiaries each.
According to the audited financial statement as of June 30, 2020, the company's consolidated earnings per share (EPS) were Tk 4.37 and separate Tk 1.84, consolidated net asset value per share Tk 23 without re-evaluated reserve and separate Tk 20.98.
Besides, the company's weighted average consolidated earnings per share for the last five years were Tk 3.30 and separate Tk 2.82.
Lanka Bangla Investment is the issue manager for the company's IPO.
Baraka Power, the parent company of Baraka Patenga Power, is already listed on the bourses since 2011.