Express Insurance Ltd is set to hold IPO lottery draw on July 23, aiming to allocate 26.07 million ordinary shares among the successful applicants.

The lottery draw will be held through digital platform due to ongoing Covid-19 pandemic, company officials said.

After the lottery draw, the result will be published on the websites of Dhaka Stock Exchange, Chittagong Stock Exchange, issue manager, and the company.

The non-life insurer raised a fund worth Tk 260.79 million from the capital market using the fixed price method.

The company’s IPO oversubscribed by six times as the company received about Tk 1.58 billion against IPO shares worth Tk 260.79 million, sources said.

The stock market regulator approved the initial public offering (IPO) proposal of the company on February 18 of this year.

As per the approval, the insurer offloaded more than 26.07 million ordinary shares at an offer price of Tk 10 each under the fixed price method.

Initially, the company’s IPO subscription opening date was set on April 13 and closing date on April 20, but subscription was suspended then temporally due to Covid-19 outbreak and the market closure.

The company’s revised IPO subscription date was June 14 to June 18. Later, the subscription period extended until July 2 with the securities regulator’s approval as many investors failed to apply for the IPO shares due to the ongoing Covid-19 pandemic, company officials said.

Of the total IPO proceeds, the company will invest Tk 205.79 million in fixed deposit receipt (FDR) and treasury bonds, investment in capital market worth Tk 40 million and bearing the IPO related expense of Tk 15 million, as per the IPO prospectus.

As per the financial statement for the year ended on December 31, 2018, the company’s net asset value (NAV) was Tk 18.72 per share with revaluation reserve and earnings per share was Tk 1.12.

The company’s authorised capital is Tk 750 million and pre-IPO paid-up capital is Tk 391.18 million.

AAA Finance & Investment, IIDFC Capital and BLI Capital are working as issue managers of Express Insurance IPO.

Incorporated in March 2000, the Express Insurance is one of the fast-growing general insurance companies in Bangladesh. The company is carrying on all kinds of insurance, guarantee and indemnity business other than life insurance business.

Currently, 47 life and non-insurance companies are listed with the Dhaka Stock Exchange.