Kathmandu: IME Life Insurance Company has approached the Securities Board of Nepal (SEBON) to issue initial public offerings(IPOs) at a premium. The insurer has planned to issue 12 million shares at Rs.276 with a premium of Rs.176.
The insurer with a paid-up capital of Rs.2.8 billion will collect Rs.3.31 billion from the public shareholders against IPOs. Its paid-up capital will reach Rs. 4 billion after IPOs. The additional funds generated from the premium will be allocated to the reserve fund which can be later used to distribute stock dividends. IME Life has reserve funds of Rs. 1 billion.
Life insurers have an obligation to maintain at least Rs. 5 billion paid-up capital by the end of next month.
Reliable Nepal Life Insurance and Sun Nepal Life Insurance have already applied to SEBON to get approval for IPOs at a premium.