Express Insurance to make share trading debut Monday
The company will deposit 74 percent of the IPO fund at banks
Express Insurance Ltd will commence trading of its shares at the Dhaka Stock Exchange from Monday (August 24) under 'N' category.
The Bangladesh Securities and Exchange Commission (BSEC) approved Express Insurance to go public with a condition of investing at least 20 percent of its IPO fund in the capital market.
The company will deposit 74 percent of the IPO fund at banks.
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As per the approval, Express Insurance has raised Tk26 crore capital by releasing 2.6 crore ordinary shares at an offer price of Tk10 each under the fixed price method.
The company will invest Tk2 crore in treasury bonds, Tk1 crore in mutual funds and Tk2.21 crore in the secondary market of the stock exchange from the IPO fund.
It will keep the remaining Tk19.36 crore in fixed deposit receipts at banks.
Express Insurance was set up in 2000. Its authorised and paid-up capital is Tk75 crore and Tk39.11 crore respectively.
Md Abdul Awal is the chairman of Express Insurance and is also the managing director of Synthia Securities - a brokerage firm.
Besides, Express Insurance's Vice Chairman Mahfuza Younus is also the chairman of Sonali Papers and Board Mills.
The revenue of Express Insurance has been stagnant for the last five years.
It was Tk42 crore in 2014 which came down to Tk40 crore in 2018.
Due to an increase in the company's operating costs, its net profit decreased by 49 percent during the five-year period to Tk4.38 crore in the 2018 financial year.
