Bangladesh:Sonali Life launches US$2.2m IPO

Subscriptions for shares in the IPO of Sonali Life Insurance began yesterday, with the insurer intending to raise BDT190m ($2.2m).

Sonali is the first company to adopt the newly introduced pro-rata basis for the allocation of the IPO shares, reported The Financial Express. The new basis came into effect on 1 April of this year, replacing the lottery system.

Sonali's IPO exercise, performed via the electronic subscription system (ESS), will close on 3 June. The IPO is of 19m new ordinary shares offered at the fixed price of BDT10 each.

The stock market regulator, Bangladesh Securities and Exchange Commission, approved the life insurance company's IPO application last December. The company's pre-IPO paid-up capital is BDT285m and its post-IPO paid-up capital would be BDT475m.

The insurer, established in July 2013, will invest the IPO proceeds in Treasury bonds, fixed deposits and listed stocks. Currently, 50 insurance companies—comprising 38 non-life and 12 life insurers—are listed on the Dhaka bourse.

Source: Asia insurance review