Himalayan Reinsurance is gearing up to unveil its Initial Public Offering (IPO) catering specifically to Nepali citizens working abroad. The IPO launch date has been pushed to the 4th of Mangsir after the Dashain festival break, as confirmed by NMB Capital, the sales manager.
While the company has expressed its intention to introduce the IPO with a premium, the process has momentarily hit a pause pending clarifications from the Insurance Board and Securities Board of Nepal. Rishikesh Pokharel, Chairman of the Public Accounts Committee, stressed the importance of clearly specifying the Nepalese currency in premium pricing, stating, “We have sought clarification from the Insurance Board and Securities Board regarding the legality of releasing the IPO at a premium.”
The awaited response to the inquiry will be pivotal in determining the course of the IPO issuance process. Should the response not align with legal consent, the company may have to postpone the entire IPO release procedure. Himalayan Reinsurance had received approval from the Securities Board for a Rs. 10 billion IPO, of which 30% or Rs. 3 billion would be allocated for the general public.
Accordingly, the company planned to release 3 million shares at a premium of Rs. 106 per unit in the first phase, targeting Nepali citizens employed abroad. The preparation for the IPO issuance at a rate of Rs. 206 per share with a premium addition of Rs. 106 per unit is underway.