Dhaka, Bangladesh (BBN)-Bangladesh National Insurance Company will make its share trading debut Thursday on the bourses under “N” category.
The non-life insurer, which raised BDT 177 million through initial public offering (IPO), will be the 47th listed firm in the insurance sector that accounts for around 3.0 per cent of DSE’s market capitalisation.
The company floated 17.70 million ordinary shares at an offer price of BDT 10 each.
IPO subscription was held between February 17 and February 25.
Prime Finance Capital Management Ltd acted as the issue manager of the BD National Insurance’s IPO.
The insurance company received above BDT 7.07 billion against public issue of BDT 177 million, which is over subscribed by around 40 times, according to the company’s statement.
IPO subscription of the company was supposed to begin June 30, last year, but the securities regulator -Bangladesh Securities & Exchange Commission (BSEC) suspended the IPO subscription process following an allegation raised by the Insurance Development and Regulatory Authority (IDRA).
However, the securities regulator on January 18 withdrew restriction for IPO subscription of the company and set fresh timeframe for starting the public subscription.
As per the company’s financial statement for the year ended on 31 July, 2014, earning per share (EPS) was BDT 1.07 (except extraordinary income) and net asset value (NAV) per share BDT 15.65.
The IPO fund is being used for investment in FDR, Treasury Bonds and meeting the IPO expenses, according to the IPO prospectus.
Currently, a total of 46 insurance companies are listed on the Dhaka bourse.
Of them, 34 are non-life insurance and 12 life insurance companies.