Sonali Life Insurance Company will raise Tk19 crore from the stock market by issuing 1.9 crore shares through an Initial Public Offering (IPO).
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO on Wednesday.
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 audited financial report for the year ending on 31 December 2019, the net asset value per share of the company was Tk25.47, excluding revaluation, and its life insurance fund amount stood at Tk95.33 crore.
The authorised capital of Sonali Life Insurance Company Limited, which was incorporated in Bangladesh on 7 July 2013, is Tk100 crore.
Its paid-up capital is Tk28.50 crore and the post paid-up capital will be Tk47.50 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.
The 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 investments 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 Tk0.50 crore investments in stocks will also be able to subscribe to the shares in the same way.
There are 78 companies – 32 life insurance and 46 non-life insurance – in the insurance sector of Bangladesh.
Out of 32 life insurance firms in the country, 29 are private, two foreign one is nationalised.