Following the eagerly anticipated allotment of Himalayan Reinsurance Limited shares, investors are now turning their attention to the Nepal Stock Exchange (NEPSE), eagerly awaiting the disclosure of the opening range for the company’s shares in the secondary market.
The buzz in the financial community is driven by the anticipation that NEPSE, in accordance with its established practices, will set the opening range up to three times the net worth per share.
Himalayan Reinsurance Limited recently concluded its Initial Public Offering (IPO) on Poush 11, attracting substantial interest from investors.
Investors are keenly aware of NEPSE’s historical tendency to set the opening range for newly listed companies up to three times the net worth per share. In this context, the per-share net worth of Himalayan Reinsurance Limited, as indicated in its audited report for the fiscal year 2078-79, stands at Rs. 103.07. Therefore, investors are speculating that NEPSE might unveil the opening range within the range of Rs. 103.07 to Rs. 309.21 per share.
The NEPSE’s role in determining the opening range is pivotal as it sets the tone for post-allotment trading. Investors and market analysts are closely monitoring this development, as the opening range not only reflects market sentiment but also influences trading strategies and investment decisions.
The IPO, initiated on Mangsir 27 and continuing until Poush 2, provided ample time for the general public to participate, resulting in a total of 2,49,00,000 shares being offered at a face value of Rs. 100 per share, with an additional premium of Rs. 6. The total premium of Rs. 106 per share translated to a selling price of Rs. 206 per unit.
As investors eagerly await the NEPSE’s official announcement of the opening range, the financial community is abuzz with discussions and analyses regarding the potential performance of Himalayan Reinsurance Limited shares in the secondary market. The disclosure of the opening range by NEPSE is expected to bring clarity and direction to the trading of Himalayan Reinsurance Limited shares, adding another chapter to the evolving narrative of Nepal’s dynamic stock market.