IPO Allotment of Citizen Life Insurance Concluded [IPO Result]

September 14, 2023 | Investopaper

IPO Allotment Of Citizen Life Insurance Company Limited

NIBL ​​Ace Capital Limited, the issue manager for the initial public offering (IPO) of Citizen Life Insurance Company Limited, has concluded the IPO allotment process on Thursday.

After the allotment, 9,00,000 applicants have received 10 shares each.

A total of 14,07,2371 valid applicants had subscribed for the shares. With the allotment, more than 5.07 lakh applicants were left empty-handed.

To view the IPO result of Citizen Life Insurance Company Limited, click the link below:

IPO Result Of Citizen Life Insurance Company Limited

Second Phase: IPO To General Public

After the first phase, the company had floated 90,00,000 shares (at a price of Rs 244 per share) in the second phase of the Initial Public Offering (IPO). The second phase of the IPO was open from Bhadra 15, 2080 BS.

Due to over-subscription of shares, the public offering was closed on Bhadra 19, 2080 BS.

Interested investors could apply for a minimum of 10 shares and the maximum of 15,00,000 shares.

Along with the general public, 5,62,500 shares were allotted to the mutual fund schemes. Likewise, 5,62,500 shares were the reserved for the employees of the company (@ Rs. 100 per shares).

First Phase: IPO To Foreign Employed Nepalis

In the first phase of the IPO, the company had sold 11,25,000 shares to the foreign employed Nepalis from Ashad 31, 2080 BS. This is 10 percent of the general’s public quota.

The life insurance company had sold the shares at a price of Rs 244 per share. The face value of each share is Rs 100 while Rs 144 is the premium.

Interested foreign-employed Nepalis could apply for minimum of 10 shares and maximum of 11,25,000 shares.

The first phase of the IPO was closed on Shrawan 14, 2080 BS.

For this purpose, Securities Board Of Nepal (SEBON) had given the permission to the company on Ashad 19, 2080 BS. The company had submitted an application to the board on Chaitra 5, 2079 BS seeking permission for the IPO issuance.

In total (including first and second phase), the company will issue 1,12,50,000 unit shares in the IPO at a price of Rs 244 per share. The face value of each share is Rs 100 while Rs 144 is the premium. Hence, the total public issue amounts to Rs 266.40 crores.

However, the company will issue 5,62,500 shares to the employees at a par value of Rs. 100.

The company had appointed NIBL ​​Ace Capital Limited as the sales manager to issue an IPO. Chief Executive Officer of Citizen Life Inusrance Poshak Raj Poudel and Deputy Executive Officer Mekh Bahadur Thapa on behalf of NIBL ​​Ace Capital, signed the agreement for IPO issuance.

As of Ashad’s end, 2080 BS, the paid-up capital of Citizen Life Insurance is Rs. 2.62 Arba. After the issue of IPO, the capital will rise to Rs 3.75 Arba. Life Insurance companies should meet the minimum capital of Rs 5 Arba, as per the direction of Nepal Insurance Authority.

About Citizen Life Insurance Company

Citizen Life Insurance Company is one of the newly established life insurance company of Nepal. It started its operations on October 19, 2017 (Karthik 2, 2074). Beema Samiti, the regulatory board, provided the operation license on August 23, 2017 (Bhadra 07, 2074). It is  promoted by Kantipur Media Group, Shikhar Insurance, reputed Aviation industries, successful bankers, and others.


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