Asian Life Insurance to Issue 42% Right Shares

Kathmandu – Asian Life Insurance Company Limited is set to issue 42 percent right shares to its existing shareholders starting from Ashar 25 (July 9). The company has received final approval from the Securities Board of Nepal (SEBON) to float a total of 14,279,312.48 units of right shares at a face value of Rs 100 per share.

Through this offering, the insurer aims to raise approximately Rs 1.42 billion. The right shares will be issued in the ratio of 0.42:1, meaning shareholders will be eligible to purchase 42 shares for every 100 shares they currently hold.

The company had its book closure on Jestha 16 (May 30) for the purpose of this issuance. As a result, only those investors who were listed as shareholders at the Nepal Stock Exchange (NEPSE) by Jestha 14 (May 28) are eligible to apply. The application period will remain open until Shrawan 13 (July 29).Muktinath Capital Limited has been appointed as the issue and sales manager for the offering. Interested investors can apply through the capital’s designated locations. Applications will also be accepted at Asian Life’s own offices.

In addition, applications can be submitted online via the “Mero Share” system under the C-ASBA service, available through all ASBA-participating banks and financial institutions licensed by SEBON and CDS & Clearing Ltd.

Infomerics Credit Rating Nepal has assigned Asian Life an issuer rating of ‘IRN A-’ for this offering, indicating that the company has a sufficiently strong capacity to meet its financial obligations on time.

Currently, Asian Life’s paid-up capital stands at Rs 3.39 billion. Following the issuance and allotment of the right shares, the capital will increase to approximately Rs 4.82 billion.