Citizen Life Insurance Company Closing IPO Issue for Nepalese Employed Abroad from Today; Oversubscribed by 1.62 Times So Far
Sun, Jul 30, 2023 9:56 AM on Latest, IPO/FPO News,
Citizen Life Insurance Company Limited is closing the issue of 11,25,000 unit IPO shares to Nepalese Citizens working aboard from today i.e. on 14th Shrawan. The issue opened on 31st Ashad, 2080.
The issued capital of the life insurance company is Rs. 3.75 Arba of which 30% i.e. 1,12,50,000 unit shares are issued to the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 11,25,000 unit shares have been allocated for Nepalese citizens working abroad, whereas 5% i.e 562,500 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 562,500 units have been set aside for the mutual funds. The remaining 90,00,000 units will be issued later to the general public.
The shares are issued for Rs. 244 per share (Rs 100 face value + Rs 144 premium price) to the general public and for the employees of the company at a par value of Rs. 100.
NIMB Ace Capital is appointed as the issue manager. The IPO issue will raise a total of Rs. 2.66 Arba for the company. Out of this Rs 1.53 Arba will be the premium amount and the rest would add to the paid-up capital.
According to CDSC, 26,180 applications have been received through Nepalese citizens working abroad for a total of 1,830,890 units. Thus, the issue is already oversubscribed by 1.62 times so far.
ICRA Nepal has upgraded the issuer rating of Citizen Life Insurance Company Limited to [ICRANP-IR] BBB (pronounced ICRA NP Issuer Rating triple B) from [ICRANP-IR] BBB- (pronounced ICRA NP Issuer Rating triple B minus). Such issuers are considered to have a moderate degree of safety regarding the timely servicing of financial obligations.
Citizen Life Insurance Company Limited is a public limited life insurance company (LIC), licensed by the Insurance Board in August 2017 and operating since October 2017. Its head office is in Teku, Kathmandu. The company has been established with Nepalese capital by its promoters, who include the media industry (Kantipur Publications Pvt. Ltd.), Nepalese BFIs, merchant bankers, investment management companies, insurance companies, and high net-worth individuals.
