KATHMANDU, Nov 1: The initial public offerings (IPOs) worth more than Rs 1.84 billion have been put on hold as the Security Board of Nepal (Sebon)-- the government’s regulatory body of the sector-- has remained without its chairperson for almost a month.
On October 6, the government sacked the then Sebon Chairperson Bhishma Raj Dhungana, who was accused of his involvement in insider trading of shares of various companies despite assuming the top post of the regulatory body. Dhungana was proven guilty for transferring 12,000 units of shares of Sarvottam Cement Pvt Ltd to his daughter’s name before the company issued its IPOs.
24 companies preparing to issue IPOs worth Rs 6.5 billion
Since then, Sebon has remained defunct to make decisions on major issues. It was just on Thursday, the Ministry of Finance in a public notice invited applications from prospective candidates for the post of Sebon's chairman.
According to Sebon, six companies are currently waiting to receive final approval from the regulator to issue their primary shares. If everything goes as planned, Green Ventures is floating IPOs worth Rs 625 million, Balephi Hydropower of Rs 365.59 million, and Dordi Khola Jalabidhyut will be issuing primary shares of Rs 295.19 million.
Similarly, Bindhyabasini Hydropower Development Company will be issuing Rs 250 million while Himalayan Hydropower Limited and Nesdo Sambriddha Laghubitta Bittiya Sanstha Limited are coming up with their IPOs of Rs 225 million and Rs 82.87 million, respectively.
Apart from these, procedures of 16 other companies have also been put on hold at the Sebon. These companies have planned to issue their primary shares of more than Rs 4 billion.
