Desh General Insurance to raise Tk16cr through IPO
Each share of the company will have a face value of Tk10
Desh General Insurance Company will raise Tk16 crore from the stock market through an initial public offering (IPO) to expand its business.
The company will issue 1.6 crore shares, the Bangladesh Securities and Exchange Commission (BSEC) said in a statement on Wednesday, after giving the green light to a proposal in this regard.
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The prime objective of the company is to carry on the insurance, guarantee and indemnity business.
Each share of the company will have a face value of Tk10.
Desh General Insurance will invest the IPO funds in: the capital market, fixed deposits and treasury bonds.
According to the audited financial report for the year ending on 31 December, 2019, the earnings per share (EPS) of the company stood at Tk1.36 while its net asset value per share was Tk11.62, excluding revaluation.
Like most of the general insurance companies in the industry, Desh General Insurance underwrites risks in the: fire, marine, motor, and miscellaneous business areas.
The company started its operations in March 2000. The company has no subsidiary and does not belong to a holding company.
The Prime Finance Capital Management Limited is working as the issue manager of Desh General Insurance for its IPO process.
As per BSEC's decision, institutional investors with a minimum of Tk1 crore investments in stocks can subscribe to the shares of the company through the electronic subscription system.
Besides a recognised pension fund and provident fund, institutional investors with a minimum of Tk0.50 crore investments in stocks will also be able to subscribe to the shares in the same way.
There are 78 companies – 32 life insurance and 46 non-life insurance – in the insurance sector of Bangladesh.
