Amana Takaful Life’s IPO oversubscribed on opening day

Insurance company, Amana Takaful Life Ltd’s Initial Public Offering (IPO), the sale of shares worth Rs. 75 million was oversubscribed on its opening day (July 21), demonstrating strong investor confidence in the company’s vibrant prospects and high growth potential.

The company said in a media release that it had offered 50 million ordinary voting shares at Rs. 1.50 per share on the Diri Savi Board of the Colombo Stock Exchange (CSE), which represents 10 per cent of its total stake, at the successful IPO.

Following the listing, Amana Takaful Life expects its growth to accelerate further. The company expects a Compound Annual Growth Rate (CAGR) of 34 per cent over the next five years – supported by a number of strategic initiatives which are underway – which represents a further improvement from its CAGR of 31 per cent over the last five years, the release said.

With the listing Amana Takaful Life also becomes the first publicly quoted segregated life insurer in Sri Lanka, following the mandatory segregation of Life and General insurance companies on 1st February 2015, in compliance with Insurance Board of Sri Lanka’s (IBSL’s) Regulation of Insurance Industry (Amendment) Act, No. 3 of 2011.

“Amana Takaful Life takes great pride in the strong confidence placed by the investors in the potential and prospects of the company – reflected in the oversubscription of the IPO within several hours,” its chairman, Tyeab Akbarally said. “Amana Takaful Life will continue to innovate and carry out its strategic initiatives, which have the potential to further enhance its growth trajectory.”