IPO Allotment of Sun Nepal Life Insurance Concluded [IPO Result]
September 1, 2023 | Investopaper
IPO Allotment Of Sun Nepal Life Insurance Company Limited
Nepal SBI Merchant Limited, the issue manager for the initial public offering (IPO) of Sun Nepal Life Insurance Company Limited, has concluded the IPO allotment process on Friday.
After the allotment, 7,68,000 applicants have received 10 shares each.
A total of 14,60,061 valid applicants had subscribed for the shares. With the allotment, more than 6.92 lakh applicants were left empty-handed.
To view the IPO result of Sun Nepal Life Insurance Company Limited, click the link below:
IPO Result Of Sun Nepal Life Insurance Company Limited
Second Phase: IPO To General Public
After the first phase, the company had floated 86,40,000 shares (at a price of Rs 239 per share) in the second phase of the Initial Public Offering (IPO). The second phase of the IPO was open from Shrawan 32, 2080 BS.
Due to over-subscription of shares, the public offering was closed on Bhadra 4, 2080 BS.
Interested investors could apply for a minimum of 10 shares and the maximum of 20,000 shares.
Out of the total shares, 4,80,000 shares were allotted to the mutual fund schemes. Likewise, 4,80,000 shares were the reserved for the employees of the company (@ Rs. 100 per shares). Hence, the general public could participate in the remaining 76,80,000 shares.
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First Phase: IPO To Foreign Employed Nepalis
In the first phase of the IPO, the company had sold shares to the Nepalis in Foreign Employment from Shrawan 1, 2080 BS. The first phase of the IPO was closed on Shrawan 15, 2080 BS.
The company had issued 960,000 shares at Rs 239 per share to the Nepalese in foreign employment (10 percent from general public’s quota). Interested applicants could subscribe for a minimum of 10 shares and a maximum of 20,000 shares.
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 Securities Board (SEBON) on Falgun 17, 2079 BS for the IPO issuance.
In total (including first and second phase), the company will issue 96,00,000 unit shares in the IPO at a price of Rs 239 per share. The face value of each share is Rs 100 while Rs 139 is the premium. Hence, the total public issue amounts to Rs 222.76 crores.
Nepal SBI Merchant Banking Limited is the issue manager for the IPO.
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About Sun Nepal Life Insurance Company Limited
Sun Life Insurance Company was registered in Shrawan 18, 2044 BS as a life insurance company.
As of Chaitra’s end 2079 BS, the company has a paid-up capital is Rs 2.24 Arba. After the issue of IPO (if fully subscribed), the capital will increase to Rs. 3.20 Arba.
In the fiscal year 2078/79, the life insurance company collected Rs. 2.71 Arba as total premium through the sale of 451,869 policies. The company had a total life assurance fund of Rs. 3.51 Arba (as of Ashad’s end 2079 BS).
Also Read: Book Building Method In Nepal: Provision To Issue IPO At More Than Rs 100