April 5, 2017 04:00 AM NPT
KATHMANDU, April 4: Eleven companies have sought approval from the Securities Board of Nepal (Sebon) to float 5.92 million units of primary shares worth Rs 592.04 million to general public.
According to information posted on Sebon website, three hydropower companies will be offering their primary shares to general public, while seven others will float their stocks to people affected by their projects if their Initial Public Offering (IPO) plan gets the regulators' nod.
Similarly, a microfinance company is also awaiting Sebon's go-ahead to launch its IPO. Support Microfinance Bittiya Sanstha Ltd has applied for permission to float 180,000 units of shares to raise Rs 18 million from the general public.
Nepal Hydro Developer Ltd plans to raise Rs 39 million by floating 390,000 units of primary shares to the general public, while Chhyangdi Hydropower Ltd is issuing 540,000 units of primary shares to generate Rs 54 million. Similarly, Himalayan Power Parner Ltd has been awaiting the Sebon's nod to float 2.13 million units of primary shares to mobilize Rs 213.08 million from general public.
Likewise, Akhukhola Jalbidhut Company Ltd, Mailung Khola Jal Vidhyut Company Ltd and Grajnag Upatyaka Hydropower Ltd have plan to float 800,000 units, 368,143 units and 200,000 units of shares to project-affected locals.
Public companies float their primary shares at the par value of Rs 100.
Joshi Hydropower Development Company (371,400 units), Rairang Hydropower Development Company (560,000 units) and Shuvam Power Ltd (200,000 units) also have IPOs in the pipeline for local people.
Hydropower companies have been allocating certain percent of their shares to project-hit locals.
FOUR FIRMS FLOATING FPO SHARES
Similarly, four listed companies have sought permission to launch follow-on public offering (FPO).
These companies -- two insurance companies, a finance company and one hydropower company -- will float altogether 7.09 million units of shares through their respective FPOs. They, however, have not made per unit price of their shares public.
Unlike the IPO where face value is Rs 100 per share, listed companies can add premium on their share price while raising funds from the FPO.
Butwal Power Company Ltd plans to offer 40.8 million units of shares to general public at a premium price, while Pokhara Finance Ltd will float 983,682 units of FPO shares. Shikhar Insurance Company Ltd and Premier Insurance Company Ltd also have plans to float 1.32 million units and 659,565 units of shares, respectively, via FPO.