Reliable Nepal Life receives nod to issue IPOs at premium price

Kathmandu: Security Exchange Board of Nepal (SEBON) has issued approval to Reliable Nepal Life Insurance to issue IPOs at a premium price. The life insurer received a  nod from the regulatory authority on Friday.

The Board has allowed the life insurer to issue an IPO at NPR 257 with a face value of NPR 100 per share. The life insurers will issue a total of 12 million shares. Out of 12 million shares of the public group, 5 percent will be issued to employees at par value. And 5 percent to mutual funds, 10 percent to Expat Nepalese, and the remaining shares will be issued to the public. A total of NPR 2989.8 million will be collected by the company out of which NPR 1789.8 million will be transferred to the reserve fund.

Reliable Nepal Life is the second life insurer to issue IPOs after IME Life Insurance.

Currently, the company’s paid-up capital is NPR 2800 million. With the full subscription of the proposed IPOs its paid-up capital will reach NPR 4000 million. The insurer will need an additional NPR 1000 million to reach the minimum required paid-up capital.

Civil Capital Market Limited is the issue manager for the proposed IPOs.

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