City Hotel Limited's IPO Allotment To Be Concluded On Friday; 135,594 Applicants Get 10 Units Each

Thu, May 18, 2023 9:34 AM on Latest, IPO/FPO News, Share Allotment,

The IPO allotment of City Hotel Limited will take place this Friday, i.e. on 5th Jestha, 2079. The allotment program will be held at City Hotel Limited, Soalteemode, Kathmandu at 8:30 am.

The company issued 13,55,940 unit shares to the general public of Rs 100 face value. Out of the total 16,74,000 units; 10% i.e. 1,67,400 units have already been allotted to the Nepalese citizens working abroad, whereas 4% i.e 66,960 units were set aside for the employees of the company and 5% of the total offered shares i.e. 83,700 units were set aside for the mutual funds. The remaining 13,55,940 units were for the general public.

According to data presented by CDSC, the issue has received approx 11,61,280 applications applying for a total of 1,27,88,990 units of shares till the last day. Thus, the IPO was oversubscribed by 9.43 times in terms of the number of units through ordinary applicants as of the closing day.

Looking at the data, it is apparent that only 135,594 lucky applicants will get ownership of the company.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB+ (Is)’ assigned to City Hotel Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.