Saturday, September 10, 2011

Sri Lanka Islamic insurer's Maldives unit in IPO

Sept 10, 2011 (LBO) - Sri Lanka's Amana Takaful, an insurer operating on Shariah islamic finance rules said its unit in the Maldives selling 800,000 shares to raise 16 million rufiyaa in an initial public offer.

The offer would open on September 20. The firm would sell the shares at 20 rufiyaa each.

Amana Takaful (Maldives) Plc, is owned through Amana Takaful Global Ltd, a fully owned unit of Colombo listed Amana Takaful Insurance said in a stock exchange filing.

Amana Global owned 60.7 percent of the Maldives unit and 25 percent was owned by Expolanka Holdings, a Sri Lanka based firm. After the IPO public holding would be 9.1 percent and the parent's holding would fall to 55.2 percent.

The firm said it is IPO document that it had posted a profit of 9,344 US dollars 2010 down 80 percent while revenues fell 20 percent. Gross written premium was 2.5 million US dolalrs for 2010.

The firm said an economic downturn and stricture underwriting and stepping back from price competition resulted in lower revenues, but expected to do better this year.

The IPO cash would strengthen its capital base and allow it to under-write more risk and pay less re-takaful (re-insurance) the firm said.

source - www.lbo.lk

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