KATHMANDU: As of Monday evening, 965,221 people had applied for a total of 12.596 million shares, worth Rs 1.259 billion, from Nepal Micro Insurance Company Limited (NMIC), which opened its Initial Public Offering (IPO) to the public on Sunday. The IPO has already experienced tremendous demand, with applications received for 6.82 times the number of shares available by the second day, according to CDS and Clearing Limited.

The company launched its IPO after previously offering shares to Nepali citizens working abroad, employees, and mutual investment funds. The Securities and Exchange Board of Nepal (SEBON) had approved the issuance of 2.25 million shares, valued at Rs 225, which represents 30 percent of the company’s total capital of Rs 750 million.

Out of the total shares, 225,000 shares (worth Rs 22.5 million) were allocated for Nepali citizens working abroad, and 67,500 shares were distributed to company employees. Additionally, 112,500 shares were issued to mutual investment funds. The remaining 1.845 million shares, valued at Rs 184.5 million, were made available for public subscription starting on Sunday.

The IPO allows investors to apply for a minimum of 10 shares and a maximum of 100,000 shares at a face value of Rs 100 each. Applications for the IPO will be accepted until February 27. If all the shares are not subscribed by this date, the application period will be extended until March 9.

NIMB Ace Capital Limited is managing all aspects of public offering in the issuance and sales of the IPO. The firm has confidence that the IPO will do well, considering how high the level of interest shown by the public.

Demand for the IPO of NMIC is overwhelming and epitomizes growing interest in micro-insurance offerings, as well as the strong reputation of the company. Investors have flocked to participation: Proof of a bright future for the company in the financial sector.

In light of the number of applications already received, it is expected that the entire offering shall be fully subscribed in a few days from now. Management at NMIC is really keenly monitoring how things will develop with the offering and is ready to extend the deadline if necessary for all interested investors.

The critical first step for NMIC to meet the goals of expanding its shareholder base and raising capital in order to support its activities in the growing market of microinsurance in Nepal is this initial public offering (IPO).