Home ›› 27 Apr 2023 ›› Stock
The securities regulator Bangladesh Securities and Exchange Commission (BSEC) rejected the initial public offering (IPO) proposal of Sikder Insurance Company Limited, citing the insurer’s non-compliance with securities rules with its directors’ credit information bureau (CIB) reports being negative.
The stock market regulator recently sent the non-life insurance company a letter concerning the issue, sources said.
The BSEC in the letter said the regulator while reviewing the company’s draft IPO prospectus, had found that its directors’ CIB reports were negative.
Mohammad Rezaul Karim, executive director and spokesperson for the BSEC on Wednesday told The Business Post that the application was rejected due to the negative CIB reports of the insurer’s several directors, where positive CIB reports is a mandatory as per securities rules.
The company can now amend and reapply if they wish, he added.
The new-generation general insurer last year applied for a Tk 16 crore worth IPO under the fixed price method at an issue price of Tk 10 each, based on its 2021 audited accounts.
Sonar Bangla Capital Management Limited is the issue manager of the company’s IPO.
Sikder Insurance started its business operation on July 29, 2013 with a view to providing quality customer services with maximum security at a minimum cost and prompt settlement of insurance claims.
The non-life insurance company underwrites major insurance businesses such as fire and accidental damage on property insurance, marine cargo insurance, marine hull insurance, liability insurance, aviation insurance, motor insurance, engineer-ing insurance, and miscellaneous insurance.
Nasim Sikder is the chairperson of Sikder Insurance Company Limited. She is also a director of NBL Capital & Equity Man-agement Ltd.
Sikder Insurance has been operating its business through 17 branches, including the local offices.
The insurer’s others shareholders directors are Lisa Fatema Haque Sikder, Mohtasim Billah Khan, John Haque Sikder, Salah Uddin khan, Sean Haque Sikder, Dipu Haque, Jonas Sikder Khan, Monica Sikder Khan, Jeffrey Khan Sikder and Mandy Khan Sikder.
As per its financial report, the insurance company’s earnings per share (EPS) were Tk 1.19 till December 2021, according to its draft IPO prospectus.
