The company's decision to go public is guided by the vision to build a sustainable institution to propel social and economic growth of Nepali people: CEO Gyawali
KATHMANDU, June 26: Nepal Republic Media Limited, the first media company in Nepal to go public, has successfully allotted its Initial Public Offering (IPO) to the general public.
The IPO allotment ceremony, inaugurated by Deputy Prime Minister and Home Minister Narayan Kaji Shrestha, saw the IPO being distributed to ordinary citizens through the round-robin system. Due to a high demand surpassing the available supply, the round-robin method was employed.
The IPO sale of Nepal Republic Media Limited, the publisher of Nagarik Daily and Republica English Daily, among other media publications, took place from June 9 to June 13. The company issued 3,619,891 shares to the general public, with applications exceeding the demand by 3.7 times.
A total of 1,299,727 people applied for the IPO, and after the cancellation of 6,920 applications, 1,227,569 eligible applicants were retained. Given the surplus of applications, the shares were distributed through the round-robin process, with only 361,989 applicants receiving shares. Among the lucky recipients, one person was granted 11 shares, leaving over 900,000 applicants empty-handed.
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Addressing the function, Sambridhi Gyawali, chief executive officer of Nepal Republic Media Limited, expressed the company's commitment to the institutionalization of the media sector in Nepal. She emphasized the company's vision to establish a robust institution that contributes to the social and economic growth of all Nepalis.
Gyawali stated, "Nagarik and Republica represent the people in Nepali and Latin, respectively. Starting with the public in mind was always our intention at Nepal Republic Media. The decision to go public aligns with our aim of building an inclusive institution that truly represents the diverse population of Nepal."
Gyawali further explained the company's goals of transition, transcendence, and trust as it embarks on its new journey as Nepal's first publicly traded media company. Despite the adverse impact of the COVID-19 pandemic on the company's revenue, Gyawali expressed confidence that the revenue would significantly recover in the coming years, citing positive signs observed in the current fiscal year (FY) 2022/23.
Deputy Prime Minister and Home Minister Shrestha also extended his best wishes for the success of Nepal Republic Media Limited as the country's first publicly traded media company.
Nepal Republic Media Limited issued an IPO equivalent to 44.9922 percent of its issued capital of Rs 967.6 million. Additionally, 174,120 shares (4 percent) were allotted to employees, and 217,650 shares (5 percent) were allocated to mutual funds. Furthermore, 435,300 shares were issued for Nepalis employed abroad. A total of 3,619,891 shares were distributed to general investors, with 93,961 shares remaining undistributed due to incomplete applications from employees.
Infomerics Nepal, a rating agency, assigned the company a rating of 'IRN B Plus.'
Speaking at the IPO allotment function, CEO Gyawali mentioned that Nepal Republic Media Limited's annual turnover ranged between 60 to 70 crore rupees before the COVID-19 pandemic, which dropped to 17 crores during the crisis. She expressed the company's commitment to further improving its financial health while acknowledging the positive recovery stage and reduced receivables.
Gyawali outlined the company's focus on three Ts in the next three years: transition, transcendence, and trust. Transition involves shifting the primary revenue model from advertising and print sales to digital sales, accompanied by a significant investment in skills and mindset.
Despite the challenging economic situation, Gyawali expressed confidence in the company's plan to bridge the market gap and achieve their projections. She also highlighted the company's commitment to earning the trust of the people by upholding higher standards of journalism, news coverage, and reporting.
Here are some glimpses of IPO allotment ceremony:
