The Crystal Insurance Company Limited has received approval from the Bangladesh Securities and Exchange Commission (BSEC) for an Initial Public Offering (IPO).

The company will raise Tk16 crore by issuing 1.6 crore shares, the BSEC said in a statement on Wednesday after approving the proposal at a meeting.

Each share of the company will have a face value of Tk10. Using the fund, the company will invest in FDR and to meet up IPO costs and others.

According to the audited financial report for the year ended on December 31, 2019, the earnings per share (EPS) of the company stood at Tk2.92 while its net asset value per share was at Tk24.42 excluding revaluation.

The weighted average EPS of the company in the last five years stood at Tk2.58.

The Sonar Bangla Capital Management Ltd is working as the issue manager of the company for its IPO process.

Crystal Insurance Company runs all types of General Insurance Business other than Life Insurance Business.

Like most of the general insurance companies in the industry, Crystal Insurance underwrites risks in fire, marine, motor and miscellaneous business areas.

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 through the electronic subscription system.