IME Life Insurance Company Closing IPO Issue for Nepalese Employed Abroad from Today; Issue Oversubscribed by 1.39 Times So Far
Fri, Jun 30, 2023 9:25 AM on IPO/FPO News, Latest,
IME Life Insurance Company Limited is closing the issue of 12,00,000 units of IPO shares from today i.e. on 15th Ashad to Nepalese Citizens working aboard. The issue opened on 1st Ashad, 2080.
The company will be issuing 96,00,000 unit shares to the general public from 20th Ashad, 2080. The early closing date of this issue is on 24th Ashad and if the issue is not fully subscribed, it can be extended up to 4th Shrawan, 2080.
The issued capital of the life insurance company is Rs. 4 Arba of which 30% i.e. 1,20,00,000 unit shares is for the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 12,00,000 unit shares have been allocated for Nepalese citizens working abroad, whereas 5% i.e 600,000 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 600,000 units have been set aside for the mutual funds. The remaining 96,00,000 units are for the general public.
The shares will be issued for Rs. 236.91 per share (Rs 100 face value + Rs 136.91 premium price) to the general public and for the employees of the company at a par value of Rs. 100.
Civil Capital Market is appointed as the issue manager. The IPO issue will raise a total of Rs. 2.76 Arba for the company. Out of this Rs 1.56 Arba will be the premium amount and the rest would add to the paid-up capital. The current paid-up capital of the company is Rs. 2.80 Arba.
According to CDSC, 20,351 applications have been received through Nepalese citizens working abroad for a total of 16,76,430 units. Thus, the issue is already oversubscribed by 1.39 times so far.
CARE Ratings Nepal Limited (CRNL) has reaffirmed the rating of ‘CARE-NP BBB (Is)’ assigned to IME Life Insurance Company Limited. Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations, in Nepal.
IME Life Insurance Company Limited is a life insurance company registered at Office of Company Registrar under the Company Act 2006 on October 1, 2008, and obtained a license from Insurance Board on July 4, 2017. The company had an asset base of Rs. 5,281 Million as on July 15, 2021. The capital structure of the company comprises an authorized capital of Rs. 2 Billion out of which Rs. 1.40 Billion is paid-up capital from the promoter groups.
