KATHMANDU, March 13: The slow decision-making process by the top leadership of the Securities Board of Nepal (SEBON) has resulted in a backlog of applications seeking approval to issue IPOs.
The number of companies applying for IPO approval has reached 81. These companies have submitted applications to SEBON for the issuance of 354.86 million shares worth Rs 51.88 billion.
24 companies preparing to issue IPOs worth Rs 6.5 billion
Among the applicants, the majority are hydropower companies, with 42 hydropower companies' applications currently pending with SEBON. Additionally, there are 15 applications from the manufacturing and processing sector, 11 from other sectors, and 7 from the hotel and tourism sector under consideration by SEBON.
Three investment companies, three microinsurance companies, and one microfinance company are also awaiting approval for their IPO issuances. Although SEBON started processing IPO files after assuming leadership in the second week of Mangsir, it has not been able to make decisions swiftly.
Due to directives from the Public Accounts Committee of the House of Representatives, SEBON has not approved IPOs for companies with a net worth of less than 90.
