KATHMANDU: The IPO of Himalayan Re-Insurance, mired in controversy regarding regulatory oversight, has witnessed a robust response with over 60% of applications pouring in by the eighth day, Tuesday.

The company initiated the IPO exclusively for Nepali individuals employed overseas, commencing last Monday at a premium rate.

As of Tuesday evening, the number of applicants has surpassed 20,574, collectively vying for the purchase of 1,869,220 shares.

According to the Capital Market Development Committee (CDAC), the company has amassed over Rs 385 million, 59 thousand purchase applications.

The IPO offers ordinary shares at a rate of Rs. 206 per share, incorporating a premium of Rs. 106 over the base price of Rs. 100 per share.

In the initial phase, only Nepalese citizens employed abroad are eligible to apply.

NMB Capital, serving as the securities issue and sales manager, has outlined that Nepalis working overseas can apply for a minimum of 10 shares, up to a maximum of 300,000 shares in the company’s IPO.

Applicants have until December 4 to submit their IPO purchase applications.

The controversy surrounding the IPO, granted at a premium under the chairmanship of Securities Board head Ramesh Kumar Hamal, continues to brew.

Despite concerns about the company’s less-than-satisfactory financial standing, Chairman Hamal’s decision to proceed with the IPO has sparked controversy, with accusations of favoritism toward the promoters for raising funds from the public.

Despite an earlier directive from the Finance Committee of the Federal Parliament to halt the IPO, it was eventually issued after a reconfiguration of the regulatory landscape.