The Express Insurance Limited has received conditional approval from the Bangladesh Securities and Exchange Commission (BSEC) for an Initial Public Offering (IPO).
The company will raise Tk26 crore by issuing 2.6 crore shares, the BSEC said in a statement on Tuesday after approving the proposal at a meeting.
According to the commission's condition, the 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 Tk 10.
The company will spend the rest of the fund to buy Treasury Bond and to meet up IPO cost and others.
According to the audited financial report, ended on December 31, 2018, the weighted average earnings per share (EPS) of the company in the last five years stood at Tk1.42 while its net asset value per share (NAVPS) was at 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.