Union Insurance: stock trading debut on 16 Jan

Union Insurance Company Ltd will make its stock trading debut on 16 January.

On 10 January, the Central Depository Bangladesh Limited (CDBL) credited the company's primary shares to the Beneficiary Owner (BO) accounts of investors.

The company completed its initial public offering (IPO) subscription between 15 and 22 December, 2021.

The Bangladesh Securities and Exchange Commission (BSEC) allowed the company to raise Tk19.36 crore with an IPO issue of 1.93 crore ordinary shares.

The insurer will invest the funds in fixed deposit receipts (FDR) and the capital market, and a portion of the funds to purchase floor space.

It applied once before to the commission to do an IPO but failed to comply with securities rules.

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

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

According to its January-September 2020 reports, net profits of the company stood at Tk2.70 crore and its earnings per share, Tk0.93. Its net asset value per share was Tk16.02.

In the same timeframe, its net premium stood at Tk43.11 crore, and its net claim was Tk8.68 crore. 

Union Insurance Company Ltd provides insurance coverage in areas of property damage by fire incidents, marine cargo, motors, liabilities, and engineering projects. 

It was incorporated as a public limited company in August 2000.