Meghna Insurance wants to go public for Tk16cr
The insurer sought the regulator’s approval to issue an IPO under the fixed price method
Highlights
- The company will raise Tk16cr through IPO
- The first-quarter net profit was Tk2.67cr
- Tk5.84cr total income during the period
- Tk24cr current paid-up capital
- EPS Tk1.11 in the January-March quarter
Meghna Insurance Company wants to raise Tk16 crore from the stock market to strengthen its business.
The insurer has sought approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue an initial public offering (IPO) under the fixed price method.
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Once approved, the firm will issue 1.6 crore ordinary shares at a face value of Tk10 each.
It wants to invest Tk2.40 crore in the government treasury bonds, Tk3.20 crore in listed securities, and Tk9.52 crore in fixed deposit receipts (FDRs).
Meghna Insurance Company Limited has decided to enter the capital market after getting an exemption from the commission.
The principal activities of the company are to carry on all kinds of insurance, guarantee, and indemnity business other than life insurance business.
It is engaged in fire, marine, engineering, motor, and miscellaneous insurance.
In the January-March quarter of 2021, the net profit of the company was Tk2.67 crore, which was Tk5.24 crore in the same period a year ago.
Officials at Meghna Insurance said the company could not make good business amid the Covid-19 pandemic.
During the time, its earnings per share stood at Tk1.11 and the net asset per share at Tk16.41 crore.
The total income of the company was Tk5.84 crore and the total asset was Tk109.74 crore till March 2021.
Its paid-up capital was Tk24 crore, while the authorised capital is Tk100 crore.
According to the audited report for 2020, the revenue of the company was Tk61.94 crore.
Asian Tiger Capital Partners Investments, Prime Bank Investment, UCB Investment are working as issue managers of the company.
There are 78 companies in the insurance sector of Bangladesh. Of them, 32 are life insurance and 46 are non-life insurance. Fifty-one companies are listed on local stock exchanges.
Experts have been saying for a long time that Bangladesh is one of the most untapped insurance markets in terms of penetration rate.
Awareness and a strong culture of insurance service behind economic activities can help the industry thrive.
