The insurance company is bound to invest its total IPO fund in the capital market
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved Desh General Insurance Company's initial public offerings (IPO) worth Tk 16 crore.
The IPO subscription of the Desh General Insurance will start in February next year, while Prime Finance Capital Management will act as the issue manager.
As per to the commission's condition, the insurance company is bound to invest its total IPO fund in the capital market, with purchasing treasury bonds, paying IPO costs and others.
Also at yesterday’s meeting, which was presided over by BSEC Chairman Shibli Rubayat-Ul-Islam, Express Insurance's proposal to offload 1.60 crore ordinary shares and the draft prospectus of UCB AML First Mutual Fund were given the go-ahead.
The open-ended mutual fund UCB AML's initial target is Tk 20 crore.
Of the amount, sponsor-directors would provide Tk 2 crore, while the remaining Tk 18 crore would be collected from general investors by selling its units at Tk 10 each.
UCB Management will act as the asset manager of the fund, Sandhani Life Insurance as a trustee and Brac Bank as its custodian.