Crystal Insurance's IPO subscription to begin 10 Nov
Of the Tk16 crore IPO fund, the company would invest Tk8 crore in FDR, Tk6.92 crore in the stock market and the rest in meeting IPO costs
The initial public offering (IPO) subscription of Crystal Insurance Company Limited is due to begin on 10 November 2020. It will run until 16 November.
The investors can submit their applications to buy shares of the company during this period.
Earlier on 23 September this year, the Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO proposal to raise Tk16 crore by issuing 1.6 crore shares at a face value of Tk10 each.
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Out of the Tk16 crore IPO fund, the company would invest Tk8 crore in FDR, Tk6.92 crore in the stock market and the rest in meeting IPO costs.
Sonar Bangla Capital Management Ltd is acting as the issue manager of Crystal Insurance for its IPO process.
According to the audited financial report for the year ended on 31 December 2019, the earnings per share (EPS) of Crystal Insurance stood at Tk2.92. Its net asset value per share excluding revaluation was Tk24.42.
The weighted average EPS of the company in the last five years stood at Tk2.58.
In the first half of this year, Crystal Insurance posted net profit of Tk6.98 crore and EPS of Tk1.25, which was 37% higher compared to the same period previous year.
Despite its surge in net profit, the company could not adjust the Tk16 crore tax demand of the National Board of Revenue (NBR) in the last 10 years. It filed a petition in high court for fair judgment in this regard.
Crystal Insurance Company was incorporated in 1999. The company transacts a wide range of general insurance business in Bangladesh.
The company underwrites risks in: fire, marine, motor, and miscellaneous business areas.
Out of its total revenue, 70% comes from marine and 20% from motor insurance.
