Nepal Reinsurance Company to issue Rs 1.28 arba worth of IPO; Paid-up capital to reach Rs 8 arba after IPO issuance

Nepal Reinsurance Company is all set to issue its Initial Public Offering (IPO) for the general public. The company has planned to issue IPO worth Rs 1.28 arba.

The company has also urged its promoters to commit for the shortcoming amount after the IPO issuance. IPO is worth 16% of its projected capital of Rs 8 arba.

The company has also planned to increase its paid-up capital to Rs 8 arba with the IPO issuance. The promoter shareholders will need to invest about Rs 1.72 arba in order to hike its capital to Rs 8 arba.

After the issuance of IPO for the general public, the promoter shareholders to ordinary shareholders ratio will be 84:16.

In order to attract the general public towards its IPO issuance, the company has also announced to issue bonus shares worth Rs 1 arba for its shareholders after the capital reaches Rs 8 arba.

However, this will not be possible until the time of 5 years elapses after the establishment of an organization.  As per the reports, the company will be floating its public offering in the base price. If the reports are to be considered, the company will distribute bonus shares after a year.