Amana Takaful Life’s Rs. 75 m IPO opens tomorrow

The Initial Public Offering (IPO) of Amana Takaful Life Limited (ATLL) – a fully-owned subsidiary of Amana Takaful PLC – via an Offer for Sale of Rs. 75 million, will open on 21 July.

The company is offering 50 million ordinary voting shares at a price of Rs. 1.50 per share, on the Diri Savi Board of the Colombo Stock Exchange (CSE). Thereby it will become the first publicly quoted segregated life insurer in Sri Lanka, following the mandatory segregation of Life and General insurance companies on 1 February 2015, in compliance with Insurance Board of Sri Lanka’s (IBSL’s) Regulation of Insurance Industry (Amendment) Act, No. 3 of 2011.

The minimum subscription has been set at 1,000 shares and multiples thereof. The Financial Advisor and Manager to the offer is Acuity Partners Ltd. and Amana Bank is the Banker to the issue. The IPO is expected to provide further strength and growth impetus to Amana Takaful Life Limited (ATLL), which has outperformed the industry for three consecutive years in terms of growth (as per IBSL Statistical Review 2015).

ATLL expects growth to accelerate further to a Compound Annual Growth Rate (CAGR) of 34% over the next five years – supported by a number of strategic initiatives which are underway. CAGR of the company over the last five years was 31%, which was substantially greater than the CAGR of 11% of the industry over the same period (as per IBSL Statistical Review 2015).

The company recorded a Gross Written Premium (GWP) of Rs. 928 million in the financial year ending 31 December 2015 and a profit of Rs. 18 million – notwithstanding pressure from increased post-segregation costs and lower yields on investment income. 

Further information on the IPO can be obtained via the Prospectus available on the website of the company and the CSE. 

ATLL operates via a branch network of nearly 30 branches that cover 22 districts, including all major cities. ATLL continuously reaches out to customers from all segments of society and offers innovative products that are convenient, affordable and reliable. As part of its commitment to remain ‘open to all’, ATLL serves all communities and employs a multi-ethnic team across its network.