Tuesday, May 28, 2024

Section

বাংলা
Dhaka Tribune

Union Insurance to debut in bourses Sunday

Union Insurance raised Tk19.36 crore through fixed-price initial public offering (IPO) bidding method last month

Update : 14 Feb 2022, 03:08 PM

In line with the recent drive to get insurance companies listed with the capital market, Union Insurance is set to become the 54th company in the sector to be listed on Sunday at the country's two bourses.

Union Insurance raised Tk19.36 crore through fixed-price initial public offering (IPO) bidding method last month by offloading 40% of the company stake post-IPO.

Talukder Md Zakaria Hossain, managing director and chief executive officer of Union Insurance Co. Ltd, told Dhaka Tribune: “Union Insurance's business has been doing well for the past few years. As a result, our journey in the stock market is starting tomorrow (Sunday). I would say that the shares of our company will definitely be profitable for the investors.”

Although established in 2020, the company took about 22 years to enter the stock market.

“We applied several times in the past. But as per Bangladesh Securities and Exchange Commission (BSEC)'s policies, we were unable to enter the market so far due to a lack of paid-up capital,” Hossain also said.

A BSEC official, requesting anonymity, said that from Sunday, Union Insurance will be trading in N category and the code will be UNIONINS, and its company code will be 25753.

The shares allotted as BO account to the applicants in the company's IPO were sent on January 10. Earlier, applications for the company's IPO subscription were accepted from December 15 to December 22 last year, the official added.

According to the company IPO prospectus, the company plans to invest Tk4.5 crore in fixed deposits, Tk9.7 crore in the capital market, and Tk4 crore for a floor purchase.

It is involved in the non-life insurance products within segments including fire, property, marine, engineering, motor, liability and miscellaneous businesses.

The insurance company generated a net profit of Tk4.3 crore during the first nine months of 2021 that translates into earnings per share of Tk0.89 based on post-IPO numbers.

During the same period of 2020, net profit stood at Tk2.7 crore, thanks to the gross premium collection of Tk43.1 crore, showed the company prospectus.

Marine cargo insurances contributed 44.3% of the total gross premium for the company during the first nine months of 2020 while fire insurances made up 33%, motor insurances contributed 10.4%, marine hull insurances with 7.4% and miscellaneous insurances added 5.1% of the total.

Sonar Bangla Capital Management was the issue manager of the company for the initial public offering.

Top Brokers

About

Popular Links

x