In the Securities and Exchange Board of Nepal (SEBON), 25 companies have initial shares (IPO) and seven companies have right share shares in the pipeline. 25 companies are preparing to issue IPOs worth Rs 6.80 billion. These companies are preparing to issue a total of 6 billion 80 million 76 million 4 hundred million equivalent IPO.
Similarly, six companies in SEBON's pipeline have sought permission to issue right shares worth Rs 1.65 billion. The companies seeking permission have two insurance, two hydropower, two finance and one development bank right shares.
Of the 25 companies preparing for the IPO, six are Laghubitta Bittiya Sanstha, two are insurance companies, 15 are hydropower companies and two are from other groups. Other group companies include Emerging Nepal and Dish Media Network.
According to the Securities and Exchange Board of Nepal (SEBON), out of 25 companies, Green Venture Limited will issue the largest IPO of 6.25 million units. The sales manager of the company is Laxmi Capital Market Limited.
Reliable Life Insurance Company, which is about to issue 6 million IPOs, is going to issue IPO at 212 per unit by adding 112 premiums. Reliable's sales manager is Civil Capital Market.
It has not been decided when the IPO of 25 companies will be issued. After submitting the application to SEBON, the board is working to study and send comments asking for documents.
Once all the procedures are completed, SEBON will approve and set the initial date for IPO issuance. Among the companies in the pipeline are Sayapatri Hydropower, Emerging Nepal, Molung Hydropower, Reliable Life Insurance, Three Star Hydropower, Rapti Hydro and General Construction, Swetganga Hydro, Mandakini Hydro and Sikij Hydro.
SEBON also mentioned that Dish Media, IME Life Insurance, Upkar Laghubitta, River Falls Power have been reviewed and commented.
Also in the final stages of review are Vindhyabasini Hydro, Himalayan Hydro, Balefi Hydro, Green Venture, NESDO Sambridha Laghubitta, Dordikhola Hydropower, Upper Solu Hydro, Upper Hewakhola Hydro, Jalpa Community Laghubitta and Rastra Utthan Lagh.
Investors have been increasingly attracted by the fluctuations in the secondary market and the fact that after the IPO, the shares will be listed in a short time and trading will start in the secondary market.
With the increase in attraction in the stock market, the number of people opening demat accounts for trading shares has exceeded 4.712 million.
As there is no chairman in the Securities Board of Nepal (SEBON), the final decision has not been given even though there is a pipeline for IPO issue. With the appointment of the chairman, the initial share issue of most of the 25 will be done in this fiscal year.
Similarly, the seven companies in the right share pipeline are Api Power, Nepal Finance, Chhandi Hydro, Corporate Development Bank, Samridhi Finance, Shikhar Insurance and IME General Insurance.
Out of which, Shikhar Insurance will issue a total of 5.275 million 572 shares in the ratio of 10: 3.
Similarly, IME General Insurance has sought permission to issue right shares in the ratio of 10: 4. If allowed, the company will issue a total of 46,030,344 shares at 100 face value.
The Corporate Development Bank is also preparing to issue a total of 3 million shares at 1: 1.5 percent. The Securities and Exchange Board of Nepal (SEBON) has stated that Samridhi Finance is preparing to issue 2,729,705 shares in the ratio of 2: 1.
Nepal Finance has also applied for the issuance of a total of 34,054,474 right shares with a face value of Rs 100 in the ratio of 1: 0.7.
Api Power, on the other hand, is distributing 18.6 million shares in the ratio of 1: 0.39. Chhyangdi Hydropower has sought permission to issue 8,93,025 shares in the ratio of 10: 3.
IPO Upcoming IPO