Sena Kalyan IPO subscription opens on 3 October

The subscription of the initial public offering (IPO) of Sena Kalyan Insurance Company Ltd will open on 3 October and continue till 8 October 2021.

The company last week received consent from the Bangladesh Securities and Exchange Commission (BSEC).

Institutional investors with a minimum of Tk1 crore investments in stocks can subscribe to the shares of the insurer through the electronic subscription system.

Besides, institutional investors of recognised pension funds and provident funds with a minimum of Tk0.50 crore investments in stocks will also be able to subscribe to the shares in the same way.

Earlier, BSEC allowed the insurer to raise Tk16 crore from the stock market through an IPO to strengthen its business.

The firm will issue 1.6 crore ordinary shares at a face value of Tk10 each under the fixed price method.

It wants to invest the fund in the government treasury bonds, listed securities in the capital market, lands, and fixed deposit receipts (FDRs).

Out of Tk16 crore, the company will invest Tk3 crore in the government treasury bonds, Tk3.20 crore in listed securities in the capital market, Tk2.5 crore in lands, and Tk6.2 crore in FDRs.

Sena Kalyan Insurance is a fourth-generation life-insurance company which was established in 2013.

It is engaged in fire, marine, engineering, motor, aviation, and miscellaneous accident insurances.

On 31 December 2020, the net profit of the company was Tk9.43 crore, which was Tk9.83 crore in 2019.

During the time, its earnings per share were Tk3.93 and net asset per share was Tk21.09 crore.

The five years weighted average EPS was Tk2.65.

The gross premium was Tk58.05 crore, while the total asset was Tk97.83 crore in the said period.

AAA Finance & Investment Ltd is working as the issue manager of the company.

The Sena Kalyan Insurance Company cannot declare, approve and distribute dividends before its listing.