KARACHI: The book building process for the listing of Adamjee Life Assurance Ltd has resulted in the strike price of Rs28 a share, according to a stock filing on Friday by Next Capital, which is the lead manager of the offer.

Fifty-three of the 81 participating investors were successful in receiving a provisional allocation of 25 million shares, it added.

The offer of 25m shares constitutes 10 per cent of the company’s post-listing paid-up capital. The strike price of Rs28, which was also the floor price set by the company, will generate Rs700m for the insurance provider.

Although investors placed bids for 100pc of the shares on sale, successful bidders have been provisionally allotted only 75pc of the offer (18.75m shares). The remaining 25pc or 6.25m shares will later be offered to retail investors at the strike price.

One of the 10 life insurance companies operating in the country, Adamjee Life Assurance Ltd is a part of Mian Muhammad Mansha’s Nishat Group. Incorporated in 2008, the company sells both conventional and Islamic insurance products.

Adamjee Insurance Company Ltd, a listed general insurance provider, currently owns 99.9pc shares in the soon-to-be-listed entity.

“The principal purpose of the offer for sale is to enable the holding company to realise a gain on its investment in [Adamjee Life Assurance Ltd]. Further, the public offering will enable the company to broaden its shareholder base by bringing in public shareholders, HNWIs [high-net-worth individuals] and financial institutions,” said the company in its offer document.

Going by the gross premiums written by private-sector life insurance players in 2020, Adamjee Life Assurance Ltd was the third-largest player with a 14pc market share. The top players were Jubilee Life (41pc) and EFU Life (27pc).

Published in Dawn, February 12th, 2022