Amid the criticism for not declaring dividend just after its debut at the bourses, Express Insurance Ltd has declared a 5% interim cash dividend for the investors.
The company did not pay any dividend for 2019 despite having profits, which sparked anger among shareholders, and many of them began to complain about the company's intentions. Even the securities regulator has briefed the company on the importance of shareholders' wellbeing.
However, based on the business result in the first three quarters in 2020, the company has come up with the interim dividends.
The newly listed non-life insurer announced 22 November as the record date for the interim dividends.
Interim dividends are the cash dividends a company pays to its shareholders before the end of the accounting year and annual general meeting.
Despite the good news of dividends on Monday, Express Insurance shares suffered a huge loss, more than 12% fall to Tk37.70 per share.
In the 2019 financial year, the company's earnings per share (EPS) increased by 17% to Tk1.31.
Over January to September this year, its EPS stood at Tk0.84, which was Tk0.71. Net asset value per share on 30 September stood at Tk15.53.
Express Insurance raised Tk26 crore capital by issuing 2.6 crore ordinary shares at face value of Tk10 each through Initial Public Offering (IPO).
The company announced to 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 Tk19.36 crore in fixed deposit receipts in banks.
Express Insurance began its journey in 2000 and its authorised and paid-up capital is Tk75 crore and Tk39.11 crore, respectively.