18th April 2025, Kathmandu
NECO Insurance will auction 225,261.35 shares starting from 25 April. These shares were not sold during the rights offering. The auction will include 181,481.35 shares for the general public and 43,779.52 shares for the founder group.
NECO Insurance Rights Share Auction
The minimum price for each share is NPR 100. Bidders must submit sealed bids with their offered price. They can offer more than the minimum price, but not less. The final date for submitting bids is 4 May.
How the Auction Works
Investors can submit their bids at several locations. These include Sanima Capital’s offices in Kathmandu (Naxal) and Biratnagar. Bidders can also visit NECO Insurance branches in cities like Birtamod, Birgunj, and Pokhara. The bid form is available at these locations.
Each bid must specify how many shares the investor wants and at what price. The founder group must bid for at least 1,000 shares. The general public can bid for 100 or more shares. Bids must meet or exceed the minimum price of NPR 100 per share.
Details of the Rights Offering
NECO Insurance previously launched a rights offering. This ran from 20 February to 27 March. Shareholders were able to buy additional shares. The total offering was 5,030,901.55 shares. The company increased its paid-up capital by 25%, or NPR 503,090,155. The rights offering followed a 4:1 ratio, meaning shareholders could buy one share for every four shares they held.
4,805,064.20 shares were successfully distributed. However, some shares remained unallocated. These shares will now be available in the auction. The unallocated shares include 181,481.83 shares from the public group and 43,779.52 shares from the founder group.
How to Participate
To participate in the auction, investors must submit their sealed bids by 4 May. Bid forms are available at Sanima Capital and NECO Insurance branches across the country. Investors must state how many shares they want and at what price.
The minimum bid is 100 shares for the public group and 1,000 shares for the founder group. Bids must meet or exceed the minimum price of NPR 100 per share.
Conclusion
NECO Insurance aims to raise additional funds through this auction. The company provides a valuable opportunity for investors. This auction ensures a fair and transparent process. Interested investors should submit their bids before 4 May.
For more: NECO Insurance Rights Share Auction