Seven Microinsurance Companies in the Process of Issuing IPOs

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NEPSE trading

Seven Microinsurance Companies in the Process of Issuing IPOs

After the Nepal Insurance Authority granted licenses to seven companies to operate as microinsurance companies, these companies are now in the process of issuing Initial Public Offerings (IPOs).

Licensing of Microinsurance Companies

Out of these seven companies, three are micro-life insurance companies and four are non-life microinsurance companies. Currently, the paid-up capital of microinsurance companies is NPR 750 million. According to regulations, microinsurance companies are required to issue at least 30% of their shares to the public.

IPO Issuance

In compliance with the rules, each microinsurance company will need to issue IPOs worth at least 30% of their paid-up capital, amounting to NPR 225 million per company. Therefore, the seven companies will collectively issue a total of 15,750,000 IPO shares.

Appointment of Sales Managers

For micro-life insurance, Crest Micro Life Insurance and Guardian Micro Life Insurance have already appointed sales managers for their IPO issuance.

Guardian Micro Life Insurance has appointed Kumari Capital as the sales manager to issue 2.25 million IPO shares.

Similarly, Crest Micro Life Insurance is also preparing to issue 2.25 million IPO shares and has appointed NIBL Ace Capital as the sales manager.

Necessary Procedures

These companies will issue IPOs after completing the necessary procedures and obtaining approval from the regulatory body, the Securities Board of Nepal (SEBON).