The opening date of the Sonali Life Insurance Company's initial public offering (IPO) subscription has been deferred. It will be held in May instead of March this year.
The Bangladesh Securities and Exchange Commission (BSEC) made the decision in a meeting on Wednesday after the company applied for the deferral.
Earlier, on 9 December 2020, the regulator gave approval to the company for raising Tk19 crore from the stock market by issuing 1.9 crore shares through IPO.
The shares will be offered to the public at a face value of Tk10 each.
The company will invest the fund in government securities, fixed deposit receipts (FDRs) and in the secondary market.
According to the company's audited financial report for the year that ended on 31 December 2019, its net asset value per share was Tk25.47, excluding revaluation, and its life insurance fund stood at Tk95.33 crore.
The authorised capital of Sonali Life Insurance Company Ltd, which was incorporated in Bangladesh on 7 July 2013, is Tk100 crore.
Currently, its paid-up capital is Tk28.5 crore and its post-IPO paid-up capital will be Tk47.5 crore.
The company has more than 76 branches and service centres across the country.
It has no subsidiary and does not belong to a holding company.
ICB Capital Management and Agrani Equity and Investment are working as the issue managers of Sonali Life Insurance for its IPO process.
As per the BSEC's decision, institutional investors with a minimum of Tk1 crore investment in stocks can subscribe to the shares of the company through the electronic subscription system.
Besides, institutional investors of recognised pension funds and provident funds with a minimum of Tk50 lakh investment in stocks will also be able to subscribe to the shares in the same way.
There are 78 companies – 32 life and 46 non-life – in the insurance sector of Bangladesh.
Out of 32 life insurance firms in the country, 29 are private, two are foreign, and one is nationalised.