April 3, 2018 11:15 AM NPT
KATHMANDU, April 3: As many as 18 companies have sought the approval of the Securities Board of Nepal (Sebon) to float 54.71 million units of shares worth Rs 4.33 billion to general public.
According to Sebon, 17 companies have applied for the Sebon's approval to float their primary shares while one company is awaiting the capital regulator's approval to launch its further public offering (FPO).
Most of the firms, who plan to float their shares to the public, are hydropower companies. Similarly, NMB Bank Ltd has sought the Sebon's nod to float 11.42 million units of shares to the public under its FPO plan.
The biggest IPO under the pipeline is the Upper Tamakoshi Hydropower Ltd (UTKHL) which is planning to float 10 percent, or 10.59 million units of its shares, to the project-affected local, while 15 percent, or 15.89 million units, will be offered to the general public. Altogether, UTKHL is seeking the Sebon's nod to issue 26.48 million units of shares to raise Rs 2.65 billion from the public.
Other hydropower companies which are preparing to launch their IPO, are Mountain Hydro Nepal Ltd (for affected people), Rairang Hydropower Development Ltd, Garjang Upatyaka Hydro Power Ltd and CEDB Hydro Fund Ltd. Joshi Hydropower Development Company Ltd, Shuvam Power Ltd, Shiva Shree Hydropower Ltd, Ghalemdi Hydro Ltd, Union Hydropower Ltd, Unique Hydel Company Ltd, Laughing Buddha Power Nepal Ltd and Ankhukhola Jalbidhut Company Ltd are also waiting for the capital market regulator's approval for floating their shares to the project-affected locals in the initial phase as part of the IPO.
NADEP Laghubittiya Sanstha Ltd and Nepal Seva Laghubitta Bittiya Sanstha Ltd are the two microfinance institutions which have also started the process to float their primary shares to the public.
Shivam Cements Ltd is also floating its primary shares to the public. According to the Sebon, the cement manufacturer has sought the regulator's approval to float 880,000 units of shares to the project-affected people and 4.4 million shares to the general public. In total, the cement manufacturing company, the first to float shares to public, plans to draw Rs 528 million by floating 12 percent, or 5.28 million units of shares, to the public.
The application for the IPO is under preliminary review of the Sebon.
SEBON CAUTIONS ILLEGAL ISSUANCE OF HYDROPOWER SHARES
Meanwhile, the Sebon has instructed companies not to float their shares without registering their securities with the board.
Issuing a notice, the capital market regulator said that its attention has been drawn toward recent notices of some hydropower companies calling for public to make investment in their securities without registering them with the board. “As it is illegal to issue securities to the public without registering them with the Sebon, it is to notify all registered companies to float their securities only after registering them and publishing the prospectus,” read the notice.
The Sebon has also cautioned investors from making investment on such securities which could put their investment at risk.