Home ›› 16 Sep 2022 ›› Stock
Islami Commercial Insurance Company has received approval from the securities regulator, Bangladesh Securities and Exchange Commission (BSEC), to raise a fund worth Tk 20.26 crore through initial public offering (IPO).
The commission approved the company’s IPO proposal during a commission meeting held at its office on Thursday with its chairman Prof Shibli Rubayat-Ul-Islam in the chair.
The BSEC also gave the green signal to Eastern Bank Limited (EBL) to issue a non-convertible bond worth Tk 500 crore at the same meeting.
Under the fixed price method, the insurer will raise the fund by offloading 3 core ordinary shares at a face value of Tk 10 each.
The insurer will utilise the fund by investing in government treasury bonds, fixed deposit receipts (FDR), capital market as well as meet the IPO expenses.
As per the financial statement as of December 2021, the company’s net asset value (NAV) per share with revaluation surplus stood at Tk 20.96, while its earnings per share (EPS) was Tk 1.82.
ICB Capital Management, Prime Finance Capital Management, and EC Securities Limited will act as the issue managers for the IPO process.
As per the BSEC condition, the company will not be allowed to declare, approve, or disburse any dividends before its listing on the stock market.
The company has an authorised capital base of Tk 100 crore while its paid-up capital stands at Tk 30.39 crore.
Incorporated in January 2000, Islami Commercial Insurance offers general insurance facilities in the areas of fire, marine, motor and others.
On the other hand, following the regulatory approval, Eastern Bank Limited will issue the non-convertible unsecured floating rate fully-redeemable subordinated bond to raise Tk 500 crore.
The bond’s coupon rate will be between 6 and 9 per cent, while per unit price of the bond will be Tk 1 crore.
The units of the bond would be offered only through private placements.
Banks, financial institutions, insurance companies, corporate bodies, asset management companies, and mutual fund entities are eligible to buy units of the bond.
UCB Investment Limited will act as the trustee for the bond.
According to the BSEC decision, the bond will be traded on the alternative trading board (ATB) of the Dhaka Stock Exchange (DSE).
