Asian Life Insurance's primary issue closed today after it was oversubscribed more than sixteen fold.
"By the end of today we expect the collection to exceed Rs 1.65 billion," said Ramesh Bhattarai, chief executive officer of Asian Life Insurance.
The Initial Public Offer (IPO) worth Rs 108 million of 10,80,000-units at a face value of Rs 100 per unit -- was floated on October 27.
"After this public issue worth Rs 108 million, the paid-up capital of the company will be Rs 360 million," he said adding there is Rs 252 million paid-up capital at present.
At a time when the secondary market has been performing poorly, the encouraging response has shown that there is still an attraction for primary issue. "People may have found the IPO more lucrative as there has been no IPO for some time," Bhattarai said.
Contrary to the banks and financial institutions, insurance companies declare bonus only once in three years.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also. The maximum limit for application was upto 20,000-units.
After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets was the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
Meanwhile, Prime Life Insurance also is in the pipeline for issuing primary shares to the public.
Showing posts with label Asian Life Insurance. Show all posts
Showing posts with label Asian Life Insurance. Show all posts
Friday, October 30, 2009
Wednesday, October 28, 2009
Complaint filed to halt Asian Life's IPO
A complaint has been registered against the primary issue of Asian Life Insurance here at the Securities Board of Nepal (Sebon).
Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit Rs 100 -- 100 per cent of the face value of per unit share, which according to the Company Act should be 50 per cent as the Asian Life Insurance has not completed three years of operation.
Asian Life Insurance Company floated its 10,80,000-units -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit yesterday. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit.
"The company's issue is against the Company Act and Sebon Regulation too," he argued.
Sebon -- the regulatory authority of the capital market -- has committed a mistake and it should correct its mistake by immediately halting the issue, Ghimire said.
According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value.
But Sebon director Niraj Giri said that the company has -- according to the condition of Insurance Board (IB) -- has asked for the 100 per cent call money. "The promoters have also paid the 100 per cent of their shares," he added.
After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit.
Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit Rs 100 -- 100 per cent of the face value of per unit share, which according to the Company Act should be 50 per cent as the Asian Life Insurance has not completed three years of operation.
Asian Life Insurance Company floated its 10,80,000-units -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit yesterday. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit.
"The company's issue is against the Company Act and Sebon Regulation too," he argued.
Sebon -- the regulatory authority of the capital market -- has committed a mistake and it should correct its mistake by immediately halting the issue, Ghimire said.
According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value.
But Sebon director Niraj Giri said that the company has -- according to the condition of Insurance Board (IB) -- has asked for the 100 per cent call money. "The promoters have also paid the 100 per cent of their shares," he added.
After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit.
Tuesday, October 20, 2009
Asian Life Insurance to go public from October 27
Asian Life Insurance Company is floating 10,80,000-unit -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit on October 27-30.
"After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million," said the company that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit. One must apply with a passport size photo. After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets is the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
However, their contribution is negligible -- around only one per cent in the total trading in the secondary market. The increase in the listed insurance companies in the secondary market might boost their contribution in the days to come.
In the fiscal year 2007-08, there were only 21 insurance companies but in 2008-09 the number increased to 25.
Rastriya Beema Samiti (Insurance Board) -- an autonomous body established to develop, systemise, regularise and regulate the insurance business of Nepal under Insurance Act, 1992 -- has been trying to make the insurance sector more transparent like the banking sexctor.
According to Nepal Rastra Bank, in the fiscal year 2008-09, the total paid-up capital of listed companies stood at Rs 61.1 billion -- an increase of 107.5 per cent in comparison to the fiscal year 2007-08.
This increase was due to the additional listing of securities. In the increased amount, the portion of rights shares was 30.7 per cent, bonus shares 6.3 per cent and ordinary shares 63 per cent. Comparatively, Nepse was flooded by rights shares as these increased by 55 per cent while bonus shares increased by 31 per cent and ordinary shares by 14 per cent.
Nepse listed 37 companies' bonus shares worth Rs 1924.77 million, 50 companies' rights share worth Rs 9307.8 million and 14 companies' ordinary shares worth Rs 19087.5 million in the last fiscal year, according to the central bank.
Meanwhile, Prime Life Insurance is also gearing for its public issue soon.
"After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million," said the company that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit. One must apply with a passport size photo. After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets is the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
However, their contribution is negligible -- around only one per cent in the total trading in the secondary market. The increase in the listed insurance companies in the secondary market might boost their contribution in the days to come.
In the fiscal year 2007-08, there were only 21 insurance companies but in 2008-09 the number increased to 25.
Rastriya Beema Samiti (Insurance Board) -- an autonomous body established to develop, systemise, regularise and regulate the insurance business of Nepal under Insurance Act, 1992 -- has been trying to make the insurance sector more transparent like the banking sexctor.
According to Nepal Rastra Bank, in the fiscal year 2008-09, the total paid-up capital of listed companies stood at Rs 61.1 billion -- an increase of 107.5 per cent in comparison to the fiscal year 2007-08.
This increase was due to the additional listing of securities. In the increased amount, the portion of rights shares was 30.7 per cent, bonus shares 6.3 per cent and ordinary shares 63 per cent. Comparatively, Nepse was flooded by rights shares as these increased by 55 per cent while bonus shares increased by 31 per cent and ordinary shares by 14 per cent.
Nepse listed 37 companies' bonus shares worth Rs 1924.77 million, 50 companies' rights share worth Rs 9307.8 million and 14 companies' ordinary shares worth Rs 19087.5 million in the last fiscal year, according to the central bank.
Meanwhile, Prime Life Insurance is also gearing for its public issue soon.
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