Securities worth Rs 13.37 billion to be floated in the near future
Kathmandu, August 25
The wait could soon be over for those who have developed an interest to take a plunge in the country’s capital market or are planning to make additional investment in the secondary market. This is because a total of Rs 13.37 billion worth of initial public offerings (IPOs), further public offerings (FPOs) and rights shares are about to be issued by 33 companies in the near future.
According to data maintained by Securities Board of Nepal (SEBON), the secondary market regulator, 18 firms have applied to issue IPOs and FPOs worth Rs 3.41 billion or 50,288,763 unit shares. Of them Butwal Power Company, Premier Insurance and NMB Bank have applied for FPO, while 15 others have applied for new issues.
In the pipeline
Panchakanya Mai Hydropower Ltd
Radhi Bidyut Company Ltd
Akhukhola Jalbidhut Co Ltd
Garjang Upatyaka Hydro Power Ltd
Joshi Hydropower Development
Shuvam Power Ltd
Sanjen Jalavidhyut Co
Laughing Buddha Power Nepal
Unique Hydel Co
CEDB Hydro Fund
Kalika Power Company
Samudayik Laghubitta Bittiya Sanstha
Unnati Microfinance Bittiya Sanstha
Union Hydropower Ltd
Butwal Power Company Ltd
Civil Bank Ltd
Karnali Development Bank
Mount Makalu Development Bank
Green Development Bank
Shree Investment and Finance
Api Power Company
Sri Ram Sugar Mills
Guheswori Merchant Banking and Finance
Nepal Community Development Bank
Bhargav Bikash Bank
Among them, SEBON has reviewed and sent its comment to three companies expressing some concerns about their public offering. Similarly, SEBON is waiting to hear back from two companies in regards to compliance and the secondary market regulator is reviewing the proposal of 13 companies.
Out of a total 18 companies that have applied for IPO and FPO, 14 are hydropower companies, two are development banks and one each from insurance and banking group. Most of the hydropower companies have proposed to issue IPO for people affected in their site areas.
Executive Director and Spokesperson for SEBON Niraj Giri said that IPOs offer the best investment option in the stock market.
However, 12 companies out of the total 15 that have applied for rights share issue are from banking group. “Banks and financial institutions are under pressure to increase their paid-up capital, so they are issuing rights shares,” Giri explained.
Nepal Rastra Bank — the central monetary authority — had directed the banks and financial institutions (BFIs) to increase their paid-up capital to Rs eight billion from Rs two billion within last fiscal.
According to Share Registration and Issue Regulation 2016, the companies that receive final approval from SEBON would have to issue shares to the public. “Each company will get a 60-day period to issue shares to the public,” Giri informed.