Sixteen companies have applied for approval from the Securities Board
of Nepal (Sebon) for initial public offering (IPO) worth combined Rs
1.56 billion.
Of the 16 companies, 11 applied in the last six months, while five of them have been awaiting the Sebon approval for the last four years. Sebon these five companies are yet to fulfill the IPO criteria.
Among these companies, 11 are the banks and financial institutions (BFIs), three are hydropower companies, while two belong to the ‘other’ group. The 11 BFIs have alone proposed IPOs worth Rs 1.19 billion.
Sebon Spokesperson Niraj Giri said most of the companies applying recently for the IPO were in process of receiving credit rating. “We will move ahead with other official procedures after we receive the credit rating certification,” he said.
The regulator has made credit rating mandatory for companies issuing IPOs worth more than Rs 30 million.
Among the 11 BFIs, eight are development banks. Of these, Nepal Industrial Development Corporation had applied four years ago. The company plans Rs 184.17 million IPO—the largest among IPOs in the pipeline at Sebon.
Mount Makalu Development Bank, Samabridhi Bikas Bank, Matribhumi Bikas Bank, Naagbeli Laghubitta Bikas Bank, Mithila Laghubitta Bikas Bank, Cosmos Development Bank and Nepal Community Development Bank are the rest in the group.
Century Commercial Bank plans to issue 9.2 million shares worth Rs 920 million. The number of primary shares that the bank plans to issue is the highest offering after Agriculture Development Bank.
Of the three hydropower companies, Ridi Hydropower Development Company plans to issue IPO worth Rs 147 million, Barun Hydropower Company Rs 24.3 million and Upper Tamakoshi Rs 25.41 million this fiscal year. Anjan Raj Paudel, former president of Nepal Stockbrokers’ Association, said the IPOs of hydropower companies could attract a large number of investors. “Investors are increasingly attracted towards hydropower companies of late,” he said.
Paudel said investors generally reluctant to invest development banks due to mergers. “As there could be delay in the listing of the shares due to the merger process, investors have to wait for a long time for trading the shares,” he said.
Meanwhile, 33 companies have sought Sebon’s approval for issuing right shares. These companies have planned to issue right shares worth Rs 6.9 billion. Of the companies, eight are insurance companies.
Prudential Insurance is offering the 1:1 right shares—the largest offering in the category. Shikhar Insurance plans to offer 2:1 right shares.
Paudel said most of the insurance companies are in the process of issuing their right shares to o meet the minimum paid-up capital requirement. The Insurance Board had asked life insurance companies to increase their paid-up capital to Rs 500 million, and non-life insurance companies to Rs 250 million.
Source: The Kathmandu Post
Of the 16 companies, 11 applied in the last six months, while five of them have been awaiting the Sebon approval for the last four years. Sebon these five companies are yet to fulfill the IPO criteria.
Among these companies, 11 are the banks and financial institutions (BFIs), three are hydropower companies, while two belong to the ‘other’ group. The 11 BFIs have alone proposed IPOs worth Rs 1.19 billion.
Sebon Spokesperson Niraj Giri said most of the companies applying recently for the IPO were in process of receiving credit rating. “We will move ahead with other official procedures after we receive the credit rating certification,” he said.
The regulator has made credit rating mandatory for companies issuing IPOs worth more than Rs 30 million.
Among the 11 BFIs, eight are development banks. Of these, Nepal Industrial Development Corporation had applied four years ago. The company plans Rs 184.17 million IPO—the largest among IPOs in the pipeline at Sebon.
Mount Makalu Development Bank, Samabridhi Bikas Bank, Matribhumi Bikas Bank, Naagbeli Laghubitta Bikas Bank, Mithila Laghubitta Bikas Bank, Cosmos Development Bank and Nepal Community Development Bank are the rest in the group.
Century Commercial Bank plans to issue 9.2 million shares worth Rs 920 million. The number of primary shares that the bank plans to issue is the highest offering after Agriculture Development Bank.
Of the three hydropower companies, Ridi Hydropower Development Company plans to issue IPO worth Rs 147 million, Barun Hydropower Company Rs 24.3 million and Upper Tamakoshi Rs 25.41 million this fiscal year. Anjan Raj Paudel, former president of Nepal Stockbrokers’ Association, said the IPOs of hydropower companies could attract a large number of investors. “Investors are increasingly attracted towards hydropower companies of late,” he said.
Paudel said investors generally reluctant to invest development banks due to mergers. “As there could be delay in the listing of the shares due to the merger process, investors have to wait for a long time for trading the shares,” he said.
Meanwhile, 33 companies have sought Sebon’s approval for issuing right shares. These companies have planned to issue right shares worth Rs 6.9 billion. Of the companies, eight are insurance companies.
Prudential Insurance is offering the 1:1 right shares—the largest offering in the category. Shikhar Insurance plans to offer 2:1 right shares.
Paudel said most of the insurance companies are in the process of issuing their right shares to o meet the minimum paid-up capital requirement. The Insurance Board had asked life insurance companies to increase their paid-up capital to Rs 500 million, and non-life insurance companies to Rs 250 million.
Source: The Kathmandu Post
