major products of the company
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Source: Research Department, Prime Bank Investment Limited (PBIL). Email: research@pbil.com.bd
IPO Profile of Express Insurance Limited
Key Particulars of the IPO
Ticker EIL
Face Value (Tk.) 10
No. of Share (IPO) (40%) 26,079,000
No. of Pre-IPO Share (60%) 39,118,464
No. of Post-IPO Share 65,197,464
Issue Size (Offer Price) (Tk) 260,790,000
Pre-IPO Paid-up Capital (TK) 391,184,640
Post-IPO Paid Up(Tk) 651,974,640
Authorized Capital (Tk) 750,000,000
No. of Free Float Shares on Debut 26,079,000
%ΔYoY NPAT Growth (6m, Jun 30, 2020) 12.29%
Post-IPO EPS (6m, Jun 30, 2020) 0.50
Annualized EPS (12m, 2020) 1.0
NAVPs (as on Jun, 2020) 15.08
PE at Tk 10 (Post-IPO) 10
Company Overview
Express Insurance Limited (EIL) was incorporated in
March 30, 2000. The company does not have any hold-
ing or subsidiary company. It has to comply with the
rules and regulations directed by the Insurance Devel-
opment Regulatory Authority (IDRA). The chairman of
the company Md. Abdul Awal is an experienced busi-
nessman and holds vital positions in a number of com-
panies, he is also the managing director of a brokerage
house named Synthia Securities Limited which operates
in the Dhaka Stock Exchange. The company has a di-
verse client base including renowned local companies
like Waltion Hi-tech Industries Limited, D.B.L Group ,
National Feed Mills Limted, Edision Group, Stylecraft
Limited among others. The company does have any oth-
er placement shareholders other than the directors and
sponsors. They also have an automatic Reinsurance
arrangement with the state owned Sadharan Bima Cor-
poration, the only Re-insurance Corporation of the
Country .
Major Products of the Company
Name of Sponsors and Directors and Key Personnel
Name Position Post IPO
%
Syed Al Farooque Director 6.63 %
Farida Razzaq Director 6.02%
Khalilur Rahman
Choudhury Director 5.97%
Md. Abdul Awal Chairman 5.52%
ABM. Kaiser Director 5.10%
Shamsur Rahman Sponsor 4.77%
Amir Hamza Sarker Director 4.54%
Mohammad Younus Sponsor 4.39%
Marium Akhter Director 4.27%
Halima Harun Director 2.67%
Latiful Bari Director 2.10%
Mahfuza Younus Director 2.10%
Md. Mazakat Harun Sponsor 2.10%
Maj. Gen. Monzur Rashid
Khan (Rtd.) Director
Ayeasha Siddique Director
Maj. Anisur Rahman (Rtd.) Director
Fuad Latif Director
Abdur Rashid Managing Director
Total 56.18%
The principal services of Express Insurance Limited are:
1. Fire Insurance
2. Marine Insurance
3. Motor Insurance and
4. Miscellaneous Insurances
Directors holding positions in other listed companies
Name Position Position
Held
Md. Abdul Awal Mercantile Bank Ltd. Sponsor
Director
Halima Harun EXIM Bank Ltd. Sponsor
Director
Sonali Paper & Board
Mills Ltd Chairman
Mohammad Younus Shahjalal Islami Bank
Ltd. Directors
Ayeasha Siddiquee Jamuna Bank Ltd. Sponsor
Director
Source: Research Department, Prime Bank Investment Limited (PBIL). Email: research@pbil.com.bd
IPO Profile of Express Insurance Limited
Major Investments in Financial Assets
Ratio 2018 2017 2016 2015 2014
ROA 3.96% 4.30% 4.53% 5.47% 8.80%
ROE 5.99% 6.29% 6.64% 8.14% 13.46%
Net Operating Cash Flows Per Share
0.78 1.65 1.45 0.17 2.97
Operating Income Ratio
9.29% 6.13% 9.63% 11.5% 16.7%
Net Profit Ratio 10.7% 11.7% 12.8% 14.1% 20.4%
Financial Indicators
Revenue Breakdown
Implication Schedule of IPO Proceeds
Particulars Amount %
Government Treasury Bonds 20,000,000 7.67%
Mutual Funds 10,000,000 3.83%
Secondary Market
(A Category Listed Securities) 22,158,000 8.50%
Investment in FDR with
Nationalized Commercial Banks 193,632,000 74.25%
IPO Expenses 15,000,000 5.75%
Total 260,790,000 100%
Particulars Approximate period of project completion & commercial operation
Investment in capital market securities
Investment with in 3
months from the collec-
tion of IPO proceeds. Investment in FDR with
nationalized commercial banks
Within 3 months of
receiving the IPO fund.
Use of the Proceeds of IPO
Financing of IPO fund
Particulars % No. of Ordi-
nary Shares
Issue
price
Issue Amount
(Taka)
Eligible
investor
(EI)
EI 10% 2,607,900
10
26,079,000
Mutual
Funds
and CIS
30% 7,823,700 78,237,000
General
public
(GP)
GP 50% 13,039,500 26,079,000
NRB 10% 2,607,900 130,395,000
Total 26,079,000 260,790,000
Return on Assets & Return on Equity NPAT & NPAT Growth
129
134
109
112 13
8
107
141
176 18
7 203
121
91
72 74 74
0
50
100
150
200
250
2018 2017 2016 2015 2014
Revenue Break down in BDT (mns)
Fire Insurance Marine Insurance Motor Insurance
0.00%
2.00%
4.00%
6.00%
8.00%
10. 00%
12. 00%
14. 00%
16. 00%
20182017201620152014
ROA ROE
495
492
461
453
447
3141323031 2525252525
0
100
200
300
400
500
600
20182017201620152014
Investments in BDT (mn)
FDR Investment in shares National Investment Bond
43.8
4
46.7
7
49.2
6
56.5
1
85.7
9
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100. 00
20182017201620152014
Net profit after tax
Source: Research Department, Prime Bank Investment Limited (PBIL). Email: research@pbil.com.bd
IPO Profile of Express Insurance Limited
Key Observations
Post IPO total shareholding percentage of the compa-
ny’s sponsors and directors would stand at 56.18% .
The company sources of revenue income in 2018 was
quite evenly spread out between their primary forms
of insurance underwritings, namely Fire Insurance
(36%), Marine Insurance (30%), Motor Insurance
(34%).
Although underwriting profit increased by 34.6% on
YoY basis in 2018, it could be a cause for concern in
the coming years, as under writing profit dropped
from BDT 96.4 mn in 2014 to BDT 55. 23 mn in 2018.
During the last five financial years the company’s the
Net Profit after Tax has been on a downward trend,
falling from BDT 85.8 mn in 2014 to BDT 43.84 mn in
2018, representing a negative CAGR growth of 15.5%.
As the company’s lions share of underwriting premi-
ums are invested in the Fixed Deposits of commercial
banks, their future investment income could take a
significant hit when banks reduce their interest rate
on savings accounts in response to interest rate cap
set by the government.
The company has history of paying stable cash divi-
dend over the last four financial years, therefore in-
vestors could expect to earn a dividend income on
their investments.
The general insurance business faces a stiff competi-
tion as there over 48 companies, who are competing
for the share in a limited market space with similar
products and business model
Issue Date of Prospectus: March 10, 2020
Year End: Dec
Issue Manager: AAA Finance & Investment Limited, IIDFC Capital Limited, BLI Capital Limited
Auditors: Ahmed Zaker & Co.
Dividends Declaration
Disclaimer
Market PE 10.98
Sector (IT) 13.18
PE – FEDERALINS 18.93
PE – PRAGATIINS 11.54
Price relative to different prices
Other IPO Details
This Document/Report has been prepared and issued by Prime
Bank Investment Limited on the basis of the public information
available in the market, internally developed data and other
sources believed to be reliable. Whilst all reasonable care has
been taken to ensure that the facts and information stated in
the Documents are accurate as on the date mentioned herein.
If any person takes any action relying on this Document, shall
be responsible solely by himself/herself/themselves for the con-
sequences thereof any claim or demand for such consequences
shall be rejected outright by PBIL or by any court of law.
Price 15 22.5 25 27.5 30 33
PE 15 22.5 25 27.5 30 33
PE relative to other companies
Email: pbil.research@gmail.com
Contact: +8802-48810315-6
CORPORATE OFFICE
Tajwar Center (5th Floor)
House: 34, Road: 19/A, Block: E Banani, Dhaka-1213
Contact Us
Prepared by
Rahat-Ul-Amin Head of Research
Shakawat Hossain Research Analyst
Syed Reazul Haque Research Analyst
Year 2018 2016 2015 2017 2014
Cash (%) 10% 10% 12% 10% 0%
Stock (%) 0% 0% 0% 0% 20%
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