Thukten Zangpo

Almost a fortnight after 15.64 million Royal Insurance Corporation of Bhutan Limited (RICBL) shares were announced for auction at a floor price of Nu 72.5 a share, only seven percent was subscribed.

As of 5pm yesterday, only 1,098,301 shares held in the name of the Sungchob Fund and Kidu Fund were subscribed.

RSEBL Chief Executive Officer, Dorji Phuntsho said that it was still early to conclude that there was poor demand for the shares. He said that all the shares could be subscribed since the big bidders, institutional bidders and high net worth bidders would place the bid today. The auction ends at 5pm today.

Additionally, he said there are interested bidders who want to subscribe and there is precedence that these bidders bid at the last moment. 

Two months ago, Royal Securities Exchange of Bhutan Limited (RSEBL) auctioned 15.64 million RICBL shares at a floor price of Nu 70. 

The floor price is the minimum price set for the offer at and above which the investors can place their bids or orders. However, the final price for the share would be determined through RSEBL’s volume-based matching process.

Most of the shares (446,998) were subscribed through RSEBL’s online portal followed by 598,044 through the brokers, and 53,259 shares through the community centres.

The highest bid for the share as of yesterday was recorded at Nu 85.

The proceeds from the sale of shares shall be used to replenish the National Resilience Fund under the Druk Gyalpo’s Relief Kidu.

Interested investors can submit their bids or orders through a broker, community centres, financial institutions, and Bhutan Post or can access through the RSEBL’s online portal.

Edited by Tshering Palden