The initial public offering (IPO) of Sikder Insurance Company is set to open for subscription on December 21, aiming to raise Tk 160 million from the stock market under the fixed price method.
The investors can submit their applications through electronic subscription systems of the stock exchanges. The subscription period will end on December 28, according to its abridged prospectus.
The non-life insurer received approval from the Bangladesh Securities and Exchange Commission (BSEC) on September 14 this year for raising the fund for business expansion.
As per the regulatory approval, Sikder Insurance will issue 16 million ordinary shares at a face value of Tk 10 each.
The minimum and maximum amount allowed for subscription for the general public, including non-Resident Bangladeshi (NRB), is Tk 10,000 only.
To qualify for subscription, general public must have a minimum investment of Tk 50,000 in matured listed securities at the market price as on December 13 while the amount is Tk 100,000 for the NRBs.
As per rules, eligible investors (EI) who intend to submit applications have to maintain a minimum investment of Tk 30 million at the market price in listed securities while the amount is Tk 15 million for approved pension funds, recognised provident funds and approved gratuity funds as on December 13.
The company will utilise the IPO funds for investing in fixed deposit receipts (Tk 40 million), investment in capital market (Tk 48 million), and floor purchase (Tk 60.87 million) while the rest will be used to meet the IPO expenses.
According to the audited financial report for the year ended on 31 December 2022, the earnings per share (EPS) of the company stood at Tk 1.22 and its net asset value per share at Tk 28.73, without revaluation surplus.
Sonar Bangla Capital Management is working as the issue manager of the company's IPO process. G Kibria & Co Chartered Accountants is acting as the auditor of the company.
Currently, the company's paid-up capital is Tk 240 million while post-IPO paid-up capital would be Tk 400 million. Its authrised capital is Tk 500 million.
The general insurer is not allowed to declare, approve or distribute any dividend before listing with the stock exchanges.
Currently, 57 insurance companies --- 43 general and 14 life insurers --- are listed on the stock market.
Incorporated in July 2013, the principal activities of the company are to carry on all types of general insurance business other than life insurance business.
Like most of the general insurers, Sikder Insurance underwrites risks in fire, marine, motor and miscellaneous business areas, according to its website.
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