Desh General IPO, IBBL bond approved
FE Report | Thursday, 3 December 2020
The securities regulator has approved the IPO (initial public offering) proposal of Desh General Insurance Company which will raise a capital worth Tk 160 million.
The approval came Wednesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
At the meeting, the BSEC has also approved the proposal of Tk 6.0 billion subordinated bond to be issued by Islami Bank Bangladesh Limited (IBBL).
Under the fixed price method, the Desh General Insurance Company will issue 16 million shares at an offer price of Tk 10 each to raise Tk 160 million.
The company will utilise the fund for the purpose of investing in treasury bond, fixed deposit receipt (FDR) and capital market along with bearingthe IPO expenses.
As the financial statement for the year ended on December 31, 2019 the company's net asset value (NAV) without revaluation stood at Tk11.62 per share.
For the same period, the company reported its earnings per share (EPS) of Tk 1.36.
Prime Finance Capital Management is working as issue manager of the Desh General Insurance Company.
As per the BSEC approval, the IBBL will issue its bond worth Tk 6.0 billion to financial institutions, insurers, offshore development financial institutions, corporate entities and eligible investors through private placement.
The tenure of the bond whose characteristics are non-convertible, fully redeemable, unsecured and unlisted will be seven years.
The offer price of the units of IBBL's bond will be Tk 10 million per unit.
The bank will utilise the fund to strengthen its Tier-II capital base.
At Wednesday's meeting, the securities regulator also approved the draft prospectus of UCB AML First Mutual Fund, an open-end mutual fund.The initial size of the fund will be Tk 200 million.
Of Tk 200 million, Tk 20 million will come from sponsor while the remaining Tk 180 million will be collected through sales of units.
The offer price of the units of the UCB AML First Mutual Fund will be Tk 10 each.
UCB Management Ltd. is working as the fund manager, while Sandhani Life Insurance Company and BRAC Bank are the trustee and custodian of the fund respectively.