The initial public offering (IPO) lottery draw of Desh General Insurance Company Limited will be held online today.
The IPO subscription was held between 14 and 18 February.
The company aims to raise Tk16 crore from the stock market to expand its business, issuing shares at Tk10 each through the IPO.
It will invest the IPO funds in the capital market, fixed deposit receipts (FDRs) and treasury bonds.
Prime Finance Capital Management is working as the issue manager of Desh General Insurance for the IPO process.
Former Industries Minister Amir Hossain Amu and Bengal Group of Industries Chairman M Morshed Alam are the founders and major shareholders of Desh General Insurance.
According to the company's IPO prospectus, it borrowed Tk8.44 crore from different banks and three companies of Bengal Group for claim settlement till 31 December 2019. Until that period, it had Tk22 crore in FDRs.
In 2019, the company suddenly posted a 52% growth in revenue, which reached Tk30.81 crore. It had never posted such growth in the preceding years.
According to the audited financial report for the year that ended on 31 December 2019, the earnings per share (EPS) of the company stood at Tk1.36 while net asset value per share was Tk11.62, excluding revaluation. Currently, there are 78 companies – 32 life and 46 non-life – in the insurance sector of Bangladesh.