The Initial Public Offering (IPO) subscription for shares of recently approved Express Insurance is going to be deferred due to general holidays amid the coronavirus pandemic.
The public subscription of the insurance company will begin 10 working days after the capital market opens, according to a source with the issue manager.
April 13 was the pre-scheduled date for the investors to apply for the company's shares.
But the company will not be able to receive applications on the day as the general holidays have been extended twice to April 14.
The IPO subscription of a newly approved company should begin, as per the Public Issue Rules, within 20 working days after its abridged version of prospectus is published.
However, Express Insurance has 10 more working days left out of this period. So, the subscription will start 10 working days after the share market opens, the issue manager source said.
As per the relevant law, the new date for applications will be announced later, added the source.
Earlier, the Express Insurance Limited received a conditional approval for IPO from the Bangladesh Securities and Exchange Commission (BSEC) to raise some Tk26 crore by issuing 2.6 crore shares.
According to the securities regulator's stipulation, Express Insurance will be bound to invest at least 20 percent of its total IPO fund in the capital market.
Each share of the company will have a face value of Tk10.
The company will spend the rest of the fund to buy Treasury bond, and meet up IPO costs and other expenses.
According to the audited financial report, ending on December 31, 2018, the weighted average earnings per share of the company in the last five years stood at Tk1.42 while its net asset value per share was Tk18.72 with revaluation.
The AAA Finance and Investment, IIDFC Capital and the BLI Capital Ltd are working as issue managers of the company for its IPO process.
As per the BSEC decision, only institutional investors with a minimum of Tk1 crore investment in stocks can subscribe to the shares of the company under electronic subscription system.