Union Insurance IPO subscription begins on December 15

The Union Insurance Company will open initial public offering (IPO) subscriptions for Tk 19 crore public issues on December 15 under the fixed price method.

The eligible investors will subscribe for the IPO shares through the electronic subscription system until December 22.

The insurance company will offload 1.9 crore ordinary shares with a face value of Tk 10 each.

The Bangladesh Securities and Exchange Commission provided its consent for the IPO issuance on November 11.

Minimum required investment for the general public will be Tk 20,000 in matured listed securities at market price. Minimum and maximum amount allowed for subscription for the general public is Tk 10,000.

The IPO proceeds will be invested in fixed deposit receipts (FDR), in the stock market investment, purchase of a floor space and IPO related expenses, according to the prospectus.

According to the financial statements, the company’s net asset value (NAV) per share stood at Tk 16.02 (with revaluation) on September 30 while the earnings per share (EPS) were Tk 0.93.

Sonar Bangla Capital Management Ltd is acting as the issue manager for the company’s IPO process.

Union Insurance Company started its journey in Bangladesh as a public limited company in August 2000.

Presently, the insurer’s paid-up capital is Tk 29 crore and authorised capital is Tk 100 crore. The bank has recently received the regulator’s nod for collecting the fund through IPO shares.

However, the Bangladesh Securities and Exchange Commission (BSEC) set two conditions for the IPO.

As per the conditions, the bank is asked to invest Tk 200 crore in the capital market in 2021 as per the central bank rules. Besides, it won’t be allowed to declare any dividends to the shareholders until its capital market listing process is finished.