Kathmandu: Four life insurance companies are all set to collect NPR 10.64 billion for equity capital from the primary stock market. The IPOs of Reliable Nepal Life Insurance, Sun Nepal Life Insurance, and Citizen Life Insurance are in the offing while IME Life Insurance has already floated IPOs for the public.
IME Life has already floated IPOs for the public following a wide response from ex-pat Nepalese workers. IME Life is allowed to issue IPOs at NPR 236.91 per share with a premium of NPR 136.91. Similarly, Reliable Nepal Life has received a nod from the Security Exchange Board of Nepal (SEBON) to float 14 million units of IPO at NPR 257 per share. Citizen Life Insurance will float 16 million units at the rate of NPR 244. Sun Nepal Life has 9.12 million units of shares. It has received approval to issue IPOs at NPR 239 per share.
All these shares have a face value of NPR 100 only. These life insurers have received the nod to issue IPOs as premium prices amid profitability in the last three consecutive financial years.
The life insurers will collect a total of NPR 6.150 billion share premium. The amount collected from the share premium will be transferred to the reserve funds. It is expected that all these life insurers will be distributing stock dividends to their shareholders utilizing the reserve funds. It is mandatory for the life insurers to maintain a minimum of NPR 5 billion paid-up capital.