KATHMANDU, FEBRUARY 12
Mahila Laghubitta Bittiya Sanstha Limited is issuing 400,000 units of shares as Initial Public Offering (IPO) from today, adding to the excitement of retail investors in Nepal.
The IPO worth Rs 40 million will be issued until February 16 (Falgun 4) at the earliest, and will be extended up to February 26 (Falgun 14), if not subscribed.
However, seeing the latest 'craze' over IPO in the country, it is expected to be oversubscribed within the earliest closing date.
Among the total offered units, 0.5 per cent of the total issued capital (5,000 units) has been set aside for the employees of the company and 5 per cent of the total offered shares which amount to 20,000 units have been reserved for funds. Meanwhile, 375,000 units of the total shares will be issued for the general public.
Nepal SBI Merchant Banking Limited has been appointed as the issue manager for the IPO.
The public will be able to apply for a minimum of 10 units and maximum of 1,000 units of shares.
Paid-up capital of Mahila Laghubitta is Rs 60 million and after the IPO issuance will increase to Rs 100 million. The company has 56 branches in 29 districts with its head office in Sanga, Kavre.
Following the IPO issuance, share structure of Mahila Laghubitta will include 60 per cent promoter shares and 40 per cent general shares including that for the employees.
The ICRA Nepal has assigned (ICRANP- IR) BB issuer rating to Mahila Laghubitta Bittiya Sanstha Limited. Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations. ICRA Nepal Limited is the first Credit Rating Agency in Nepal and a subsidiary of ICRA Limited of India. It was incorporated on November 11, 2011 and granted licence by the Securities Board of Nepal (SEBON) on October 3, 2012.
