13 companies slated to float 6.1 million sharesThirteen companies are slated to float 6,128,256.53 shares in initial public offerings (IPO) and further public offerings (FPO) this fiscal year.
Thirteen companies are slated to float 6,128,256.53 shares in initial public offerings (IPO) and further public offerings (FPO) this fiscal year.
Among the companies that have applied for permission from the Securities Board of Nepal (Sebon), 10 companies plan to issue shares worth a combined Rs386.95 million.
Eight hydropower companies are awaiting Sebon’s go-ahead to IPO. Seven of them will be offering shares to locals at the project site.
According to Sebon, Akhukhola Jalbidhut has asked for permission to issue 800,000 shares, Rairang Hydropower Development to issue 560,000 shares and Radhi Bidhyut Company to issue 410,000 shares to the residents.
Likewise, Joshi Hydropower Development will be offering 371,400 shares and Mailung Khola Jal Vidyut will be offering 368,143 shares to locals. Garjang Upatyaka Hydropower and Shuvam Power will be floating 200,000 shares each during their IPOs. These hydropower companies are offering shares to locals as required by law to set aside a certain portion of their stock for residents affected by the project.
Meanwhile, Chhyangdi Hydropower will be issuing 540,000 shares to the general public at its IPO.
Two micro finance companies, Swadeshi Laghubitta Bittiya Sanstha and Mahuli Samudayik Laghubitta Bittiya Sanstha, will be offering 300,000 shares and 120,000 shares respectively. The shares have been priced at Rs100 apiece.
According to Sebon officials, the regulator has been reviewing the documents of the companies that have applied for permission to make a public float. “If everything is in order, these companies will be able to IPO within this fiscal year,” a Sebon source said.
Likewise, three companies have planned to hold FPOs. As per Sebon, Shikhar Insurance has sent a proposal to issue 1,362,781 shares. Premier Insurance and Mahakali Bikas Bank have asked for permission to issue 659,565 and 236,367 shares respectively at a premium. “However, shares prices are yet to be fixed,” said the source.
Meanwhile, the country’s capital market has seen an additional 16,289,688 shares worth Rs4.69 billion in the last one and a half months.
Dev Bikas Bank, Neco Insurance, Kailash Bikas Bank and Bhargav Bikas Bank issued rights shares while United Modi Hydropower made an IPO. Last week, Standard Chartered Bank floated 2,558,140 shares in an FPO.
Three companies are slated to issue rights shares next month. Mission Development Bank, Kumari Bank and Diprox Laghubitta will be offering a combined 18,024,082 rights shares worth Rs1.78 billion.