Bangladesh life insurer eyes IPO

The firm intends to allocate Tk8.40 crore for government treasury bonds.

Zenith Islami Life Insurance plans to raise Tk15 crore through an initial public offering (IPO) from the capital market to comply with regulatory requirements and expand its business, as reported by the Business Standard.

The company has applied to the Bangladesh Securities and Exchange Commission (BSEC) to issue 1.5 crore ordinary shares at a face value of Tk10 each.

Under its expansion plan, the life insurer aims to invest in FDR, government treasury bonds, the capital market, and cover IPO expenses. 

Specifically, the firm intends to allocate Tk8.40 crore for government treasury bonds, Tk2.80 crore for FDR, Tk2.80 crore for the capital market, and Tk1 crore for IPO expenses. 

S M Nuruzzaman, the CEO, told the Business Standard that the company had planned to enter the capital market a few years ago but was delayed by the COVID-19 pandemic. 

Now, they have filed for an IPO to meet regulatory demands and achieve greater compliance, which will positively impact their financials.