Oversubscribed Asian Life IPO issue closes

KATHMANDU: Asian Life Insurance’s primary issue closed today after it was versubscribed more than tenfold.
“By the end of today we expect the collection to exceed Rs 1.65 billion,” said Ramesh Bhattarai, chief executive officer of Asian Life Insurance.
The Initial Public Offer (IPO) worth Rs 108 million of 10,80,000-units at a face value of Rs 100 per unit — was floated on October 27.
“After this public issue worth Rs 108 million, the paid-up capital of the company will be Rs 360 million,” he said adding there is Rs 252 million paid-up capital at present. At a time when the secondary market has been performing poorly, the encouraging response has shown that there is still an attraction for primary issue. “People may have found the IPO more lucrative as there has been no IPO for some time,” Bhattarai said.
Contrary to the banks and financial institutions, insurance companies declare bonus only once in three years. Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also.
The maximum limit for application was upto 20,000-units. After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue. The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar’s Office gave the go-ahead on October 8.
NIDC Capital Markets was the issue and sales manager of the insurance company that has — according to unaudited accounts — posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.

Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies — under Nepse’s insurance companies sub-group — with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.

Himalayan News Service

Complaint filed to halt Asian Life's IPO

29, Oct 2009
A complaint has been registered against the primary issue of Asian Life Insurance here at the Securities Board of Nepal (Sebon). Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit 100 per cent face value of the shares, which according to the Company Act should be 50 per cent as it has not completed three years of operation.

Asian Life Insurance Company floated its 10,80,000-units shares worth Rs 108 million of primary shares at a face value of Rs 100 per unit from 27th October 2009. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit. The issue is against the Company Act and Sebon Regulation.

Sebon, the regulatory authority of the capital market has committed a mistake and it should correct its mistake by immediately halting the issue, he added. According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value, Ghimire claimed.

But Sebon director Niraj Giri said that the company has, according to the condition of Insurance Board (IB) called for the 100 per cent call money. "The promoters have also paid the 100 per cent of their shares," he added. After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capitals at present.

Source: 
THT

Asian Life Insurance floats its IPO

27, Oct 2009
The stream of Primary Issues has taken up its gear in Nepalese capital market again. Just before a couple of days, Miteri Development Bank shatters the record with maximum times of demand ever in IPOs on robust of general people outlook.
Bear has strong regime in the sole secondary market where investors are wary of losing amounts day by day. Hence, people preferred the risk free and lucrative investment opportunities and primary market stands in front choice.
Amid inflation in the nation, dreary investment opportunities in capital market and profitable but highly risky commodities market, flow of money in the IPOs has transport with great enthusiasm. Investor's willingness to allot shares in their favor and expectation of high return from safe and lower investment has triggered their wealth towards IPO investment despite the feeble situation in the political and economical milieu of the nation.
From today, Asian Life Insurance Company Ltd. has issued 1080000 units of shares (including 43200 units for its employees) to the general public at face value of Rs. 100. The Insurance Company which has its registered address at Birgunj-7 of Parsa district will close its IPO on 30 October 2009 (sooner) or latter date of 10 November 2009. It has posted Rs. 3.325 million net profit for fiscal year 2064/65 and Rs. 8.438 million (un-audited) for the fiscal year 2065/66.
Forty two years old Bijay Kumar Sarawagi is the Chairman of the Company who was former Chairman of Birgunj Chamber of Commerce and Industry and Chairman of Birgunj Finance. NIDC Capital Markets Ltd. has been appointed at the issue and sales manager of Asian Life Insurance. (For Company's prospectus visit event calendar at nepalsharemarket.com).
Source: Jamb News Service

Down-tick prolongs: NEPSE plunged 4.89 points

The retreation at Nepal stock exchange persists yet again allowing the shabby market to close at red zone for fifth day in a row. Investors are much more caution and anxious to know the spot motive behind the downhill, however not single but bundle of grim news has triggered the negative move of stock market. The benchmark Nepse index sagged down 4.89 points or 0.82 percent to 590.44 led by financial stocks.
Analyst viewed that, the rigid rules and regulation imposed by governing bodies at stock market has impede the growth supported by investors weak outlook on the political and economical milieu. Likewise, flow of new shares in the market as right shares, bonus shares has increased the supply side along with IPOs restricted the flow of investment in stock market.
Today, Prime Commercial Bank Ltd. with stock symbol PCBL has been listed along with Sunrise Bank Ltd. (SRBL) and Vibor Bikash Bank Ltd. (VBBL). 10000000 units shares of PCBL, 12500000 units shares of SRBL and 6800000 unit shares of VBBL has been listed today on consent of Nepal Stock Exchange and trading of all those banks will be started from 3 November 2009 (2066 Kartik 17). Likewise, from today Asian Life Insurance Company Ltd. has issued 1080000 units of shares (including 43200 units for its employees) to the general public at face value of Rs. 100.
The selling pressure mostly on financial stocks has triggered the downhill trend. Commercial banks which command the titanic volume of trade in daily trading hour fronted the declining rally losing 8.03 points or 1.39 percent to 571.23. Machhapuchchhre Bank (Rs. 351, -6.40%),Everest Bank (Rs. 1825, -5.98%), KIST Bank (Rs. 352, -4.86%), NICB (Rs. 817, -3.88%) along with key banks as Standard Chartered (-Rs 20), Nepal SBI (-Rs 4), Kumari Bank (-Rs 20) plummets in banking sectors. Likewise, development bank lost 0.67 points (-0.10%), finance slid 1.60 points (-0.26%) and insurance edge down 1.66 points or 0.27 percent. However, hydropower rose marginal of 0.71 points and others added 4.70 points on positive pricing of Nepal Telecom (Rs. 545, +0.74%).
Sensitive index, 78 scrip domestic blue chip ended losing 1.85 points or (-1.23%) to 148.47 as key financial scrip traded below previous close. Sensex consists, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Similarly, float Index an indicator of performance of ordinary shares in the market fell 0.49 points to 56.45.
Merely 69 companies registered their presence in the secondary market with 22 gainers and 35 losers. The A-D ratio was maintained at 0.63. All in all 93511 shares traded today via 1010 transactions. Moreover, Rs. 53209728 turnover was realized along with Rs.416176.55 million market capitalizations. Yesterday, Rs. 57064520 turnover was realized from 90370 units of shares traded along with Rs.419623.3 million market capitalizations
The top five standouts of the day are MFCL(9.85%), GFL( 6.3%), CIT( 3.84%), CZBIL( 3.48%), PSDBL(2.04%). Whereas, NEFL(-22.95%), MBL( -6.4%), EBL( -5.98%), KIST( -4.86%), NICB( -3.88%). comprised of the top five losers.

Asian Life Insurance to go public from October 27

Asian Life Insurance Company is floating 10,80,000-units -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit from October 27. "After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million," said the company that has Rs 252 million paid-up capital at present. Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit.
One must apply with a passport size photo. After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue. The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets is the issue and sales manager of the insurance company that has -- according to unaudited accounts - posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profits for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years. Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies' sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total paid up worth Rs 2,070,350,400.
However, their contribution is negligible -- around only one per cent -- in the total trading in the secondary market. The increase in the listed insurance companies in the secondary market might boost their contribution in the days to come. In the fiscal year 2007-08, there were only 21 insurance companies but in 2008-09 the number increased to 25. According to Nepal Rastra Bank, in the fiscal year 2008-09, the total paid-up capital of listed companies stood at Rs 61.1 billion -- an increase of 107.5 per cent in comparison to the fiscal year 2007-08.
This increase was due to the additional listing of securities. In the increased amount, the portion of rights shares was 30.7 per cent, bonus shares 6.3 per cent and ordinary shares 63 per cent. Comparatively, Nepse was flooded by rights shares as these increased by 55 per cent while bonus shares increased by 31 per cent and ordinary shares by 14 per cent. Nepse listed 37 companies' bonus shares worth Rs 1924.77 million, 50 companies' rights share worth Rs 9307.8 million and 14 companies' ordinary shares worth Rs 19087.5 million in the last fiscal year, according to the central bank. Meanwhile, a la Asian Life Insurance, Prime Life Insurance is also gearing for its public issue soon.