Adamjee Life Assurance Company Ltd Applies for Listing on PSX

Adamjee Life Assurance Company Limited (ALACL) has applied for listing on the Pakistan Stock Exchange (PSX).

The principal purpose of the Offer for Sale is 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

According to the draft prospectus, the Issue is being made through the book-building process at a floor price of Rs. 28.00 per share, whereby accumulating a total issue size of 25,000,000 ordinary shares. The shares will be issued through the book-building process to eligible investors — including a premium of Rs. 18/- per share — with a price band of up to 40%.

The general public portion of the offer comprises 6,250,000 ordinary shares (25% of the total offer) at the strike price. In case, the retail portion of the offer remains unsubscribed, the unsubscribed shares will be allotted to the successful bidders of book-building on a pro-rata basis.

Adamjee Insurance Company Limited is a public limited company incorporated in Pakistan on September 28, 1960, under the repealed Companies Act, 1913 (now the Companies Act, 2017). The company is principally engaged in the general insurance business. It is backed by Nishat Group.

The Group has a strong presence in the three most important business sectors of South Asia namely textiles (Nishat mills, Nishat Linen), Cement (DG Khan Cement), and financial services (MCB), Adamjee Life Assurance Company Limited, and Security General. In addition, it also has a reasonable market share in aviation (Pakistan Aviators and Aviators Limited), power generation (Nishat Power Ltd.), and paper products (Nishat Shoaiba Paper Mills).

Adamjee Life Assurance Company Limited (ALACL) is engaged in the life insurance business carrying on nonparticipating 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. Under Conventional Life Insurance business, the Company underwrites non-participating individual life, non-unitized investment-linked, unitized investment-linked and group life/ group credit life business in four statutory business funds, namely, the Conventional Business Fund, the Accident & Health Business Fund, the Non-unitized InvestmentLinked Business Fund, and the Unit Linked Business Fund.

On the Takaful side, the Company underwrites Individual unitized investment-linked Family Takaful Business and Group Family Takaful/credit protection business in “Individual Family Takaful Unit Linked Business Fund” and “Group Family Takaful Business Fund” respectively.