Book-building process of Adamjee Life Assurance ends up in strike price of Rs28

February 11, 2022 (MLN): The book-building process of the Initial Public Offering (IPO) of Adamjee Life Assurance Limited (ALACL) has resulted in a strike price of Rs28 per share.

Next Capital, who was the consultant to the Issue for this IPO, updated via notification to PSX that total of 81 investors participated in the book building of ALACL, of which 53 were deemed successful.

Out of the total provisional allocation of 25 million shares, around 11.5 million have been allocated to TREC Holders, 3.3 million to Other Institution or Corporates, 7.2 million to Mutual Funds, 1.8 million to High Net worth Individuals, 0.76 million to Investment Companies, while the remaining 0.44 million shares have been allocated to Provident/ Pension Funds.

ALACL is a wholly-owned subsidiary company of Adamjee Insurance Company Limited.

ALACL is engaged in the life insurance business carrying on non-participating business only. In accordance with the requirements of the insurance ordinance 2000, the company has established a shareholders’ fund and the required statutory funds in respect of each class of its life insurance business.

The company offers both conventional life insurance and family takaful policies. The company is backed by Nishat Group, which is one of the leading and most diverse business groups of Pakistan.

The principal purpose of the offer for sale was to enable the holding company to realize a gain on its investment in ALACL. Further, the public offering will enable the company to broaden its shareholder base by bringing in public shareholders, HNWIs and financial institutions. It will also aid in increasing ALACL’s transparency and enhance good governance measures.

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