Union Insurance IPO subscription begins

The Union Insurance Company unveiled initial public offer (IPO) on Wednesday to raise Tk 19 crore under the fixed price method.

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

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

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

Minimum required investment for the general public is 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), 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.