KATHMANDU, JUNE 8
Nepal Republic Media (NRM), which publishes Nagarik daily and Republica English daily, is set to issue 3,525,930 primary shares in initial public offering (IPO) to the general public from June 9 to 13, becoming the first private media company to go public.
The deadline will, however, be extended till June 23 if the applications target are not reached within the stipulated time.
Applicants can apply for a minimum of 10 shares and a maximum of 500 shares.
Though the company had wanted to go public for a long time, the plan has finally materialised after receiving approval from Securities Board of Nepal (SEBON), according to Shova Gyawali, director at NRM.
"Our mission and vision are clear and we have been very transparent about it. As a media company, we have always prioritised and focused on fair journalism. Our company had plans to go public for a long time and we have finally realised that vision," she said.
According to her, over the next three years, following some improvement in the business environment, which is still affected by the ongoing war and economic challenges, the company plans to invest the capital received from the issued shares towards media development and repayment of loans, and leading the company towards a more sustainable development approach.
"After three years, the company will further allocate shares to the public in different phases," she added.
Of the total authorised capital of Rs 967.6 million, 44.9922 per cent of the capital, equivalent to Rs 435.3 million has already been assigned to Nepalis working abroad with the face value of Rs 100 per share in the first phase.
A total of 435,300 primary shares were allotted through the round-robin method in an event organised by Mega Capital Markets Ltd, the issue manager, to Nepali migrant workers working abroad. Of 20,791 applications received, six were classified as ineligible.
Of the total shares allocated for the general public, 174,120 units, or four per cent have been allotted for the firm's employees, while 217,650 units, or five per cent have been allocated to mutual funds.
A version of this article appears in the print on June 9, 2023, of The Himalayan Times.
