Nepal Micro Insurance has completed its Initial Public Offering (IPO). The company sold 1.845 million shares to the public. The total value of the shares was Rs 184.45 million. Each share had a face value of Rs 100.
The Nepal Securities Board had approved the issuance of 2.25 million shares. Out of these, 225,000 shares were for Nepalis working abroad. Additionally, 67,500 shares were reserved for employees. Moreover, a total of 112,500 shares were allocated to collective investment funds. Finally, the remaining 1.845 million shares were open for the public.
Huge Investor Interest
The IPO received an overwhelming response. According to CDS and Clearing, as of Wednesday, 1.572 million people had applied. They requested 2.411 billion shares. As a result, demand was 11.057 times higher than the available shares.
Experts say this reflects a growing interest in Nepal’s insurance sector. In fact, many investors see microinsurance as a promising industry. Since financial security is becoming a priority, such companies are gaining attention.
Simple Application Process
NIMB Ace Capital managed the IPO. Investors could apply for a minimum of 10 shares. However, the maximum allowed was 100,000 shares. Applications were accepted through C-ASBA-accredited banks. Furthermore, they were also submitted via financial institutions and the Mero Share platform.
The high number of applicants shows rising participation in Nepal’s stock market. Clearly, many small investors now see IPOs as a good opportunity. They expect insurance companies to expand and provide good returns.
Impact on Nepal’s Stock Market
With high demand, Nepal Micro Insurance is expected to perform well on the stock exchange. Once listed on the Nepal Stock Exchange (NEPSE), prices may rise if interest remains strong. Consequently, market analysts predict a positive start.
The insurance industry in Nepal is growing rapidly. More people now seek financial protection. In particular, microinsurance is popular among low-income individuals. These services offer affordable insurance solutions. Therefore, companies like Nepal Micro Insurance play a crucial role in financial inclusion.
Future of Nepal Micro Insurance
The success of this IPO shows that Nepal’s microinsurance sector has great potential. Many people need insurance, but options have been limited. Fortunately, companies like Nepal Micro Insurance fill this gap. They provide financial security to more people. Thus, this contributes to economic stability in the country.
As Nepal Micro Insurance grows, it may introduce new services. Additionally, it could expand to serve more customers. Given these factors, the future looks bright for this company and the entire industry.
For more updates on Nepal’s financial sector, visit Nepal Monitor.
