The allotment process for the Initial Public Offering (IPO) of Crest Micro Life Insurance Limited was finalized today at the offices of the issue manager, NIMB Ace Capital Limited, located in Lazimpat, Kathmandu.
Crest Micro Life Insurance Limited launched 1,845,000 units valued at Rs 184.5 million as an Initial Public Offering (IPO) directed towards the general populace (Falgun 22-26, 2081).
From the total of 2,250,000 units, 10% (225,000 units) have been allocated to Nepalis residing abroad, while 3% (67,500 units) are reserved for the company’s workforce, and 5% (112,500 units) have been designated for mutual funds. The balance of 1,845,000 units was made available to the public at a par value of Rs 100.
The issuance garnered applications from 1,955,685 valid applicants, seeking a collective total of 22,584,770 units. This led to oversubscription by over 13.28 times.
As per the allotment procedure, a total of 184,500 applicants were granted 10 units each through a lottery system, while the remaining 1,771,185 applicants were left without allotment.
Additionally, 10,126 applicants who sought 154,880 units were deemed ineligible.
ICRA Nepal has awarded an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP Issuer Rating double B) to Crest Micro Life Insurance Limited (Crest or the firm), indicating a moderate risk of failing to timely meet financial commitments. This rating serves as an assessment of the overall creditworthiness of the rated entity, independent of any specific debt instrument.
Crest Micro Life Insurance Company Limited is a publicly traded company that received its license from the Insurance Board in April 2023 and has been actively functioning since then. The company’s headquarters are situated in Surkhet, while its registered office is located in Sanepa, Lalitpur. As of mid-July 2024, Crest possesses a paid-up capital of NPR 525 million, with substantial shares held by Himalayan Reinsurance Limited (21.43%), Metro Capital Pvt. Ltd. (16.62%), Mr. Kishan Lal Dugar (6.67%), K.R.S Investment Pvt. Ltd. (6.67%), Ms. Sangeeta Devi More (3.97%), and Mr. Anupam Rathi (3.33%), among others. The company is in the process of preparing to issue an IPO for the general public shortly.
