Meghna Insurance Company makes its debut trading today (Wednesday) under 'N' category, a disclosure said.
The Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO (initial public offering) proposal on March 1 last under the fixed price method.
As per the regulatory approval, Meghna Insurance Company raised a capital worth Tk 160 million from the capital market offloading 16 million shares of Tk 10 each.
The company will utilise the fund for investment in fixed deposits (Tk 95.25 million), investment in the capital market (Tk 32 million), and investment in treasury bond (Tk 24 million), along with catering the IPO expenses (Tk 8.75 million).
The company has reported its net asset value (NAV) of Tk 16.41 (without revaluation) as per the audited financial statement for the year ended on March 31, 2021.
The earnings per share (EPS) was Tk 1.83 for a three-month period that ended on March 31, 2021 while the weighted average EPS of the last five years was Tk 0.56.
The pre-IPO paid-up capital of Meghna Insurance Company is Tk 240 million, while the authorised capital is Tk 1.0 billion.
Asian Tiger Capital Partners, Prime Bank Investment and UCB Investment jointly worked as issue managers of the company's IPO.
As per the BSEC condition, the company will not be allowed to recommend any dividend before its listing on the bourses.
Currently, 53 insurance companies -- life and non-life -- are listed on the capital market.
After the listing of Meghna Insurance Company, the number of listed insurers will stand at 54.
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