Union Insurance subscription opens Wednesday

The subscription of the initial public offering (IPO) of Union Insurance will open on Wednesday and continue till 22 December 2021.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to raise Tk19.36 crore by issuing 1.93 crore ordinary shares.

The insurer will offer the shares to the public at a face value of Tk10 each, and invest the fund in fixed deposit receipts (FDRs) and the capital market. It will use a part of the fund to purchase a floor space.

It provides insurance coverage in areas of property damage by fire incidents, marine cargos, motors, liabilities, and engineering projects.

The insurer had earlier applied to the commission but failed to comply with the securities rules.

Later that year, the BSEC exempted insurance companies from the securities rule to enable them to get listed on the stock market under the fixed price method.

Presently, the insurance company's paid-up capital is Tk29.04 crore.

According to reports of the January-September period of 2020, the net profit of the company was Tk2.70 crore and its earnings per share stood at Tk0.93.

During this period, its net premium stood at Tk43.11 crore and its net claim at Tk8.68 crore.

At the same time, the net asset value per share was Tk16.02.

Union Insurance Company Ltd started its journey in Bangladesh as a public limited company in August 2000.