Meghna Insurance subscription opens Wednesday

The subscription of the initial public offering (IPO) of Meghna Insurance Company Ltd will open on 11 May and continue till 18 May. 

The principal business of the insurance company is to provide all kinds of insurance, guarantees, and indemnities, other than life insurance. 

It provides fire, marine, engineering, motor, and miscellaneous insurances. 

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to raise Tk16 crore from the stock market. 

The insurer will issue 1.6 crore ordinary shares at a face value of Tk10 each.  

It will invest Tk2.4 crore in government treasury bonds, Tk3.2 crore in listed securities, and Tk9.52 crore in fixed deposit receipts. 

Asian Tiger Capital Partners Investments, Prime Bank Investment, and UCB Investment are the issue managers for the IPO. 

In the January-March quarter of 2021, its net profit was Tk2.67 crore, which was Tk5.24 crore a year ago. 

During the time, its earnings per share (EPS) stood at Tk1.83 and net asset value per share at Tk16.41. 

As of March 2021, the company's total income was Tk5.84 crore and total assets stood at Tk109.74 crore. 

Its weighted average EPS for the last five years stood at Tk0.56. 

Its paid-up capital is Tk24 crore while the authorised capital is Tk100 crore. 

The company will not be able to declare, approve, or disburse dividends before its stock market listing. 

There are 78 companies in the insurance sector of Bangladesh. Of them, 32 are life insurance, and 46 are non-life insurance. Fifty-three of the companies are listed on the stock exchanges.