Amana Takaful Life announces IPO
View(s):Amana Takaful Life Ltd (ATLL) announced an Initial Public Offering (IPO) this week via an Offer for Sale of Rs.75 million, becoming the first segregated life insurer in Sri Lanka to do so following the mandatory segregation of Life and General insurance companies on February 1, 2015. The company is a fully owned subsidiary of Amana Takaful PLC. In a media release, the company said it is listing on the Diri Savi Board of the Colombo Stock Exchange (CSE), offering 50 million ordinary voting shares at a price of Rs.1.50 per share which represents a 10% stake in the company. The issue will open on July 21 while the Prospectus and application forms will be available from July 4.
The minimum subscription has been set at 1,000 shares and multiples thereof. The financial advisor and manager to the offering is Acuity Partner (Pvt) Ltd while Amana Bank is the banker to the issue. ATLL stated that the IPO which complies with the Insurance Board of Sri Lanka’s (IBSL) Regulation of Insurance Industry (Amendment) Act No.3 of 2011 is expected to provide further strength and growth impetus to the company which has outperformed the industry for three consecutive years in terms of growth, according to the IBSL Statistical Review 2015.
ATLL has outperformed the industry, growing at a Compound Annual Growth Rate (CAGR) of 31 per cent over the last five years and recorded a Gross Written Premium (GWP) of Rs. 928 million in the financial year ending December 21, 2015.
Comparatively, the industry grew by 11 per cent CAGR over the same period and 20 per cent in 2015. Despite 2015 being the company’s first year of operations as an independent entity, ATLL recorded a profit of Rs.18 million. The company said it plans to grow at 34 per cent CAGR over the next five years, supported by several strategic initiatives that include growing its Agency force and entering into Bancassurance arrangements, discussing which are also underway. It also envisages strengthening its sales force by arming them with digital devices which doubles up to provide real time activity tracking and management information. -(NG)