The Initial Public Offering (IPO) /Further Public Offering (FPO) pipeline remains robust as more IPOs are being added by the regulator. After getting Securities Board of Nepal (SEBON) approval, companies can issue their IPOs accordingly. Here is the list of upcoming IPO/FPO with the required regulatory approvals.
Altogether 8 companies are in the process of issuing a total of 81.03 lakh units IPO/ FPO to the general public which are in SEBON pipeline. Among them are two hydropower companies, four microfinance companies, an insurance company and a commercial bank.
Nepal Life Insurance Company Limited and Nepal SBI Bank Limited are issuing FPO to general public at premium price.
| S.NO |
Name of the Company |
Number of Shares |
Amount of Issue (Rs.) |
Remarks |
| 1 |
Samata Microfinance Bittiya Sanstha Limited (IPO) |
94,800 |
9,480,000 |
Reply Under Review |
| 2 |
Forward Community Bittiya Sanstha Limited (IPO) |
600,000 |
60,000,000 |
Under Preliminary Review |
| 3 |
Swadesi Laghubitta Bittiya Sanstha Limited (IPO) |
300,000 |
30,000,000 |
|
| 4 |
Mahuli Samudayic Laghubitta Bittiya Sanstha Limited (IPO) |
120,000 |
12,000,000 |
Under Preliminary Review |
| 5 |
Synergy Power Company Limited (IPO) |
2,100,000 |
210,000,000 |
Approved on Dec 11, 2016 |
| 6 |
United Modi Hydropower Company Limited (IPO) |
1,725,000 |
172,500,000 |
|
| 7 |
Nepal Life Insurance Company Limited (FPO) |
3,096,429 |
|
Comment Sent |
| 8 |
Nepal SBI Bank Limited (FPO) |
67,767.87 |
65,802,601.77 |
Approved on Dec 12, 2016 |
|
Total |
8,103,997 |
|
|
Source; SEBON
As per an official of SEBON-So far those companies whom we have commented will float IPO/FPO soon compared to the ones which are still under review. And we have written that in the remarks.’
Synergy Power Company Limited is developing 10 MW Sipring Khola Hydropower Project at Dolakha district.
The Hydropower will be floating 21 lakh units IPO shares worth Rs 21 crore to the general public which have been listed in the IPO pipeline of the Board.
An official of Synergy Power Company said “We have already replied to the comment sent by SEBON. Tentatively our target is to float IPO by the first week of Poush after getting approval from Sebon.”
Sanima Capital Limited has been appointed as the issue manager for the IPO.
Synergy Power Development Limited had floated 7, 00,000 unit shares worth Rs 7 crore as part of its IPO shares for the locals of project affected people of Dolakha district (Gaurishankar, Khare, Lamabagar, Warang, Bulung and Laduk VDC project affected area).
ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed Initial Public Offering (IPO) of Synergy Power Company.
United Modi Hydropower Limited will be floating 17.25 lakh units IPO shares worth Rs 17.25 crore i.e. 15% of the paid up capital as a part of IPO for the general public and staff of United Modi hydropower.
NIBL Capital Market Limited has been appointed as the issue manager for the IPO.
An official of United Modi Hydropower said, “After getting approval from Sebon, We will be floating IPO within 2 weeks.”
United Modi Hydropower had issued 11,50,000 unit shares worth Rs 11.50 crore as part of its Initial Public Offering (IPO) at face value of Rs 100 for the locals of project affected people of Parbat district from Bhadra 26, 2073 till Ashwin 9, 2073.
United Modi Hydropower is developing 10 MW Lower 1 and 10.5 MW Lower 2 Modi Hydropower Project at Parbat district.
ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed Initial Public Offering (IPO) of United Modi Hydropower Limited.
United Modi Hydropower has already completed Lower Modi-1 and it was connected to National Grid in the year 2069. 10 MW Lower Modi-1 is situated at Parbat district. The company has plans to move forward with Lower Modi-2 Hydroelectricity project with the help of the district people of the project area and the general public. Lower Modi is 10.5 MW project.
Forward Community Microfinance Bittiya Sanstha Limited has also been added in the SEBON’s IPO pipeline.
The microfinance company will be floating 6 lakh units IPO shares worth Rs 6 crore have been listed in the IPO pipeline of the Security Board.
Krishna Prasad Bhattarai, Company Security of Forward Community said, ‘The IPO is on the preliminary review in the Board. Our plan is to float IPO within Poush end depending upon approval from Sebon.’
Nabil Investment Banking Limited has been appointed as the issue manager for the IPO.
Sunsari Based-Forward Community Micro Finance had initiated micro finances operations in December 2002, although it had started micro credit program in March1997. Almost 40% clients consist of hard core poor women (ultra poor) from Dalit / tribal community of Eastern Nepal of Sunsari and Morang and other 6 districts of the Koshi zone.
Mahuli Samudayic Laghubitta Bittiya Sanstha Limited has also been added in the SEBON’s IPO pipeline.
The microfinance company will be floating 1.20 lakh units IPO shares worth Rs 1.20 crore which have been listed in the IPO pipeline of the Security Board.
An official of Mahuli Samudayic said, ‘Our plan is to issue IPO within Falgun end, we have submitted all required documents to SEBON. After getting approval from Board, our registrar company will float IPO.
NCM Merchant Banking Limited has been appointed as the issue manager for the IPO.
Mahuli Samudayic was established on June, 1994. It basically focused on community development services at the time of its inception. It started microfinance program from September, 2000 and got upgraded to Class "D" bank on the FY 2013/14. Currently it focuses on delivering microfinance services to its clients.
Swadeshi Laghubitta Bittiya Sanstha Limited will be floating 3 lakh units IPO shares worth Rs 3 crore.
NMB Capital Limited has been assigned as the issue manager for the IPO.
Rajendra Prasad Neupane, Company Secretary of Swadesi Laghubitta said “We are seeking approval from the Board. After approval from board, most probably we will publish offer letter by second week of Magh.
Itahari based Swadeshi Laghubitta had initiated micro finances operations in December 24, 2014. It has plans to serve the underprivileged people throughout the country with stellar track record of increasing profitability, market share and product offerings in couple of years. It has five regional offices and is a national level microfinance institution.
Samata Microfinance Bittiya Sanstha Limited has been awaiting the capital market regulator’s nod to float 94,800 units of ordinary shares to the public since Bhadra 5, 2073.
NIBL Capital Markets Limited has been assigned as the issue manager for the IPO.
Dr. Madan Ghimire, CEO of Samata Microfinance said, ‘Our IPO is under review process in the Board, we have completed all necessary procedures for the IPO. Within next week I think we will get approval from the Board. As soon as we get approval we will float IPO.
Samata Microfinance is located in Simara of Bara district of Nepal. The microfinance company’s objective is to boost agricultural production to generate income and employment among the poor by delivering poor friendly and sustainable micro-finance services.
Nepal Life Insurance Company Limited (NLIC) will soon be floating 3,096,429 unit Further Public Offering (FPO) shares.
The FPO has been added in SEBON IPO/FPO pipeline for approval.
Siddhartha Capital has been appointed as the issue manager for the FPO.
As per the official of Nepal Life Insurance, “We have applied in the board for approval. The premium price will be decided by the Board and after the approval from SEBON we will be floating FPO.”
Earlier, NLIC 224
th Board of Director meeting held on Jestha 26, 2073 had decided the price of FPO. The company had announced to float 30.96 lakh unit shares at Rs 2,951 each.
But, SEBON, on Jestha 28, 2073, had temporarily banned trading of Nepal Life’s shares on Nepal Stock Exchange (Nepse) after the company made its FPO plan public without obtaining the regulator’s permission.
Nepal Life Insurance had earned Rs 5.89 crore in the first quarter of the fiscal year 2073/74 as per unaudited report. Its paid up capital remains at Rs 2.16 arba.
Nepal SBI Bank Limited (SBI) is going to issue 67,767.87 units Further Public Offering (FPO) shares in premium price. The company has also published premium price of FPO at Rs 984.
The FPO has been added in Securities Board of Nepal (SEBON) pipeline for approval.
NMB Capital has been appointed as the issue manager for the IPO.
As per the official of Nepal SBI Bank, ‘The FPO is under review process in Sebon. Our plan is to float FPO before AGM but it depend on the approval from the board. AS soon as the board approves the FPO, we will issue it within 2 weeks of getting approval’.
It is issuing the FPO as per a directive issued by the central bank to maintain at least 30% stake of public shareholders in its share structure. At present its promoter shareholder: public shareholder ratio stands at 70.12:29.88. Two Institutional promoters hold 70.12% of total shares in the Bank. State Bank of India holds 55.09% of the total ownership whereas Employee provident Fund holds 15.03% shares. After the FPO, promoter: public shareholder ratio will be maintained at 70:30.
Also the bank had proposed 28 percent bonus share to its shareholders from the profit it earned in 2072/73 fiscal year. Nepal SBI Bank had decided to issue 10:4 (40%) right share to its shareholders. The bank has decided to issue 40% right share after distributing bonus share and floating FPO.
