21 companies’ IPOs valued at Rs 3.42 billion in the pipeline
January 13, 2019 03:00 AM NPT
13 hydropower companies, 6 microfinance companies, one merchant banker going to public to mobilize capital
KATHMANDU, Jan 13: Twenty-one companies are seeking approval of the Securities Board of Nepal (Sebon) to float their primary shares worth Rs 3.42 billion.
Among them, 13 companies are from hydropower sector, six microfinance companies, one investment company and one merchant bank.
According to the data of the Sebon, applications for the initial public offering worth Rs 2.36 billion of 11 companies are under its preliminary review.
The biggest IPO is from Rasuwagadhi Hydropower Company Ltd with plans to float 10.26 million units of shares worth Rs 1.03 billion. Each share has been priced at Rs 100.
Another much-awaited IPO is from Sanjen Jalavidhyut Company Ltd which has also applied for IPO for the general public. Total 5.48 million unit shares worth Rs 547.5 million will be up for sale for the public after the Sebon gives a nod to the hydropower company.
Likewise, Bhairabkunda Hydropower Ltd has sought permission of the Sebon to float 3.18 million unit shares worth Rs 318.33 million. The company has allocated 2.53 million units to the general public while the remaining shares will be for the locals affected by the hydropower project.
CEDB Hydro Fund, Shuvam Power Ltd, Ru Ru Jalabidhyut Parioyojana Ltd, Sayapatri Hydropower Ltd, Mountain Hydro Pvt Ltd, Mallung Khola Jal Vidhyut Company Ltd, Union Hydropower Ltd, Himalaya Urja BIkas Company Ltd, Garjang Upatyaka Hydro Power Ltd, Laughing Buddha Power Nepal Ltd and Unique Hydel Company Ltd are other hydropower companies who are planning is issue IPO.
From the microfinance sector, Sparsha Laghubitta Bittiya Sanstha Ltd, Ganapati Microfinance Bittiya Sanstha Ltd, Gurans Laghubittiya Sanstha Ltd, and Swabalamban Microfinance Bittiya Sanstha have sought the Sebon's nod for the IPO. Other microfinance companies whose IPOs are in the pipeline include: Janasewa Laghubitta Bittiya Sanstha Ltd and Aasha Laghubitta Bittiya Sanstha Ltd.
Similarly, the Sebon has reviewed the applications of two companies for floating 2.11 million unit primary shares and sent them its comments on their applications. Five companies who have sought the permission of the Sebon for issuance of primary shares worth Rs 672.96 million have provided their responses to the comments of Sebon. Their applications are still under the Sebon's review.
Likewise, the Sebon is waiting for final reply and compliance from three companies who are in the process to float 1.73 million unit shares worth Rs 172.8 million.