Chartered Life allowed to raise Tk15cr through IPO

Chartered Life Insurance Company Ltd, a new generation life insurer, has secured approval from the securities regulator to go public.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday said the company would collect Tk15 crore from investors through its initial public offering (IPO) at a face value of Tk10 per share.

The IPO is intended to comply with the insurance regulator's requirement as insurers, like banks and non-bank financial institutions, are obliged to go public in several years of commercial operations.

Chartered Life would use the IPO funds to invest in government securities and publicly listed securities, alongside meeting the expenses for the IPO.

Starting the business in 2013, Chartered Life's paid-up capital stood at Tk22.5 crores at the end of 2020.

According to the actuarial valuation report, the total life insurance fund of the company was Tk35.22 crore at the end of 2021, while the surplus in the life insurance fund was over TK4.67 crore, of which Tk45 lakh can be used to pay dividends to shareholders.

AAA Finance and Investments, Trust Bank Investment and AB Investment Ltd are the joint issue managers of Chartered Life IPO.

The company cannot announce or pay any dividend before its listing, said the BSEC.