The initial public offering (IPO) of Nepal Micro Insurance Limited is set to close today, Falgun 15, after receiving an overwhelming response from investors. The company had issued 18,45,000 shares at a face value of Rs. 100 per share, opening the offer to the general public on Falgun 11, 2081.
Massive Demand for Shares
Out of the total 22,50,000 shares, a portion was already allocated:
- 2,25,000 shares (10%) were set aside for Nepalese working abroad.
- 67,500 shares (3%) were reserved for company employees.
- 1,12,500 shares (5%) were allocated to mutual funds.
- The remaining 18,45,000 shares were available for public investors.
Managed by NIMB Ace Capital Limited, the IPO allowed investors to apply for a minimum of 10 shares and a maximum of 1,00,000 shares.
As per the latest data from CDSC, the IPO has drawn 15,72,588 applications, requesting a total of 2,04,01,920 shares. This means the issue has been oversubscribed by 11.05 times, significantly exceeding available shares.
Company Background & Financials
Established on December 23, 2022, Nepal Micro Insurance Limited operates as a micro non-life insurance provider. It received its license under the Insurance Act 2079 on April 10, 2023, and began its services on May 14, 2023.
The company’s headquarters is in Bharatpur-1, Chitwan, with a provincial office in Gairidhara, Kathmandu. It offers a range of micro non-life insurance products, including coverage for motor, property, burglary, and accidents.
As of mid-July 2024, Nepal Micro Insurance had a paid-up capital of Rs. 525 million and total assets worth Rs. 636 million. CARE Ratings Nepal has assigned the company a ‘CARE-NP BB—(Is)’ rating, indicating moderate financial risk.
