Desh General Insurance Company Limited will make its debut on the country's stock exchanges on Monday (29 March).
On 23 March this year, the primary shares of the company were credited to the beneficiary owner (BO) accounts.
Earlier, on 2 December last year, the Bangladesh Securities and Exchange Commission (BSEC) allowed the insurer to raise Tk16 crore from the capital market.
The company's IPO subscription was held on 14-18 February this year.
Desh General Insurance aims to raise Tk16 crore from the stock market by issuing shares at Tk10 each through IPO for business expansion.
It will invest the IPO funds in the capital market, fixed deposit receipts (FDRs) and treasury bonds.
Prime Finance Capital Management is working as the issue manager of Desh General Insurance for the IPO process.
Former industries minister Amir Hossain Amu and Bengal Group of Industries Chairman M Morshed Alam are the founders and major shareholders of Desh General Insurance.
According to the company's IPO prospectus, it borrowed Tk8.44 crore from different banks and three companies of the Bengal Group for claim settlement till 31 December 2019. Until that period, it had Tk22 crore in FDRs.
In 2019, the company suddenly posted a 52% growth in revenue, which reached Tk30.81 crore. It had never posted such growth in the preceding years.
According to the audited financial report for the year that ended on 31 December, 2019, the earnings per share of the company stood at Tk1.36, while its net asset value per share was Tk11.62, excluding revaluation.
Currently, there are 78 insurance companies – 32 life and 46 non-life – in the insurance sector of Bangladesh.
Midway News Team
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