What is Opening Price Range of Citizen Life Insurance Company?
The opening price range of the Citizen Life Insurance Company is from Rs. 172.43 to Rs. 517.29. Nepal Stock Exchange will set the opening price range of the SCRIP based on the audited financial ratio of the last fiscal year. The net worth per share of the company is Rs. 172.43. You can check the official ratio published by the company in the offer letter.
About IPO Issue
Citizen Life Insurance Company Limited (CTZLIFE) had issued 90,00,000 unit IPO shares at Rs. 244 per share (Rs 100 face value + Rs 144 premium) to the public from 15th to 19th Bhadra, 2080.
Out of the total 1,12,50,000 units; 10% (11,25,000 units) shares were issued to Nepalese citizens working abroad, whereas 5% ( 562,500 units) were distributed to the employees and 5% (562,500 units) were set aside for the mutual funds. Whereas remaining 90,00,000 units were issued to the general public.
In the issue, 14,07,237 valid applicants applied for 1,55,22,370 units of share oversubscribing the issue by more than 1.95 times. A total of 9,00,000 applicants were allotted 10 units each and the remaining 5,07,237 applicants were returned with empty hands.
In total 5,921 applicants who applied for 84,450 units were disqualified due to various reasons.
Must Read : 7 Mistakes To Avoid While Applying For IPO in Nepal
How is the opening price range determined?
Nepal stock exchange (NEPSE) determines a new company’s opening price range based on the company’s book value (net worth per share). The net worth is taken from the company’s audited financial report issued during the IPO issuance. For example, if the book value of the company’s latest audited report is 100 then the opening price range will be 100 – 300. The minimum price should be the same as the book.
What is a special pre-open session?
A special pre-open session is a trading time for newly listed stock. When a new company gets listed in NEPSE for the first time, its share is traded in the special pre-open session for the first time. After trading in the pre-open session, its share starts to change in the continuous session which is 11 AM – 3 PM.