2nd February 2025, Kathmandu
Neco Insurance Company Limited will begin a 25% right share offering on February 20, 2025. The company plans to issue 50,030,901.55 new shares at a par value of NPR 100 each.
Neco Insurance Right Share Offering
The right share offering will increase its paid-up capital by 25%. Shareholders will be able to buy new shares at a 4:1 ratio— for every four existing shares, one new share can be purchased.
Application Process
Shareholders who held shares as of January 31, 2025, are eligible to apply for the new shares. The application window will remain open until Falgun 28, 2025. To apply, shareholders can visit Neco Insurance’s central or regional branches, or submit their applications through Sanima Capital, the issue and sales manager.
Alternatively, applications can be made through the ‘Meroshare’ platform, supported by CDS & Clearing Limited’s system. Shareholders may also use the ASWA system via authorized banks and financial institutions.
Financial Impact
The new right share offering aims to raise NPR 503,090,155. After the offering, the company’s paid-up capital will rise from NPR 2.123 billion to NPR 2.515 billion. This capital increase will support Neco Insurance’s financial growth and stability.
Credit Rating
Neco Insurance has received an IRN Single A+ rating from Infomerics Credit Rating Nepal. This rating indicates that the company has a strong ability to meet its financial obligations on time, reassuring investors of its solid financial standing.
Key Dates and Details
Issuance Date: February 20, 2025
End Date for Applications: March 12, 2025
Share Ratio: 4 existing shares = 1 new share
Total Shares Issued: 50,030,901.55 shares
Total Amount Raised: NPR 503,090,155
Sales Manager: Sanima Capital
Credit Rating: IRN Single A+
How to Apply
Eligible shareholders can apply for the right shares by visiting Neco Insurance’s offices or submitting an application online via ‘Meroshare.’ Banks and financial institutions authorized by the Securities Board of Nepal (SEBON) will also facilitate the application process using the ASWA system.
Conclusion
The right share offering by Neco Insurance provides an opportunity for existing shareholders to increase their stakes in the company. It is expected to strengthen the company’s capital base and enhance its ability to meet future financial commitments. This offering marks a significant step in Neco Insurance’s growth and expansion plans.
For more: Neco Insurance Right Share Offering