Thukten Zangpo

The Royal Insurance Corporation of Bhutan Limited (RICBL) shares saw 19 percent oversubscription at the discovered price of Nu 73.05 a share, according to the Royal Securities Exchange of Bhutan Limited (RSEBL).

This means that of the 5, 273 investors, only 2,493 who bid above Nu 73.05 a share will get the shares.

According to RSEBL’s chief executive officer, Dorji Phuntsho, they received 18, 543, 944 shares from the auctioned 15.64 million worth shares.

The shares traded at a floor price of Nu 72.05 and the maximum bid price of Nu 85 from August 20 till September 2.

The allotment was done yesterday for successful bidders on an equity basis and time priority.

Dorji Phuntsho said the final settlement of collection from the brokers and refund to the ineligible bidders would be done before September 10 this year. “There would not be any deduction from the bidders.”

He explained that refunding becomes an issue when people buy share from someone else’s bank account. “This delays the refund process as bank rejects because of mismatch in bank account holder’s name and buyers.”

He said that there would not be an issue of refund when people bid from the RSEBL online platform and brokers since all details will be available online and brokers refund themselves.

Edited by Tashi Dema