Opening Price Range of Reliable Nepal Life Insurance

The opening price range of Reliable Nepal Life Insurance if Rs. 162.29 to Rs. 486.87. Nepal Stock Exchange will determine this opening price range based on the audited financial report of the FY2078/79. The Net Worth Per Share of the company according to this report is Rs. 162.29. The Earnings Per Share (EPS) of the company is Rs. 24.46 and reserve stands at Rs. 73,91,00,000. The company issued an IPO for Rs. 257 per share (Rs 100 face value + Rs 157 premium price) to the general public and for the employees of the company at a par value of Rs. 100.

About IPO

Reliable Nepal Life Insurance Company Limited has issued an IPO to public for Rs. 257 per share (Rs 100 face value + Rs 157 premium price) to the general public and for the employees of the company at a par value of Rs. 100.

The issued capital of the company is Rs. 4 Arba of which 30% (1,20,00,000 unit) shares was issued to the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% (12,00,000 units) share have been allocated for Nepalese citizens working abroad, whereas 5% (600,000 units) have been set aside for the employees of the company and 5% of the total offered shares (600,000 units) have been set aside for the mutual funds. The remaining 96,00,000 units was issued to the general public.

Civil Capital Market is issue manager of the company. CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating assigned to Reliable Nepal Life Insurance Limited to ‘CARE-NP BBB+ (Is)’ from ‘CARE-NP BBB (Is)’.This rating is considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.

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 value.

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.

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