KATHMANDU, Jan 1: Palpa Cement Industries Limited is set to issue an Initial Public Offering (IPO) worth Rs 750 million. In the first phase, the IPO will be opened from January 9 for local residents of the industry-affected areas and for Nepali workers employed abroad.
The company will issue shares at a face value of Rs 100 per share. For local residents of the industry-affected areas—namely West Nawalparasi (formerly Nawalparasi) and Palpa district where the mine is located—the company has allocated shares worth Rs 187.5 million, equivalent to 1,875,000 shares.
According to the issue manager, the application period for locals from the affected areas will remain open until January 24, and at the latest until February 8.
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For Nepali citizens working abroad, the company has allocated shares worth Rs 56.25 million, equivalent to 562,500 shares. Applicants in this category can apply until January 14.
In the second phase, the company will issue 5,625,000 shares to the general public.
Palpa Cement Industries has received approval from the Securities Board of Nepal to issue shares worth Rs 750 million, which represents 20 percent of its issued capital of Rs 5.75 billion.
For the IPO, the company obtained a rating from Infomerics Credit Rating Nepal, which assigned an IRN BB+ rating. This rating indicates a moderate level of risk in the company’s ability to meet its financial obligations.
