Express Insurance H1 net profit up 13%

Express Insurance Limited reported a 13 percent increase in net profit at Tk3.24 crore in the first half of this year. 

However, the company will commence trading of its shares at the Dhaka Stock Exchange from Monday under the 'N' category.

In the first six months of this year, earnings per share of the company was Tk0.50 while the net asset value per share stood at Tk15.08.

In the second quarter (Q2) of this year, Express Insurance's net profit surged by 118 percent to Tk1.74 crore despite countrywide 66-day general holidays to curb coronavirus spread.

The Bangladesh Securities and Exchange Commission (BSEC) approved the insurance to go public in condition of at least 20 percent investment of its IPO fund in the capital market.

The company says it will deposit 74 percent of the IPO fund at banks.

As per the approval, Express Insurance has raised Tk26 crore capital by releasing 2.6 crore ordinary shares at an offer price of Tk10 each under the fixed price method.

The company will invest Tk2 crore in treasury bonds, Tk1 crore in mutual funds and Tk2.21 crore in the secondary market of the stock exchange from the IPO fund.

It will keep the remaining Tk19.36 crore in fixed deposit receipts at banks.

Express Insurance was set up in 2000. The authorized and paid-up capital of the company are Tk75 crore and Tk39.11 crore respectively.

Md Abdul Awal is the chairman of Express Insurance and is also the managing director of Synthia Securities -- a brokerage firm. Besides, Express Insurance's Vice Chairman Mahfuza Younus is also the chairman of Sonali Papers and Board Mills.