IPO Update: SEBON Preparing to Approve, 31 IPO Proposals Awaiting Approval

The recent surge in investor participation in Nepal's stock market can partly be credited to the IPOs issued in the past couple of years. As the shares were often listed at a higher price in the secondary market, IPOs became a quick way to earn passive income. This attracted the general public to these IPOs, and the rest is evident.

As of writing, there are a total of 48,05,820 Demat accounts registered in the country. 39,17,440 of them have also registered for Meroshare, the official online application portal that is responsible for taking the investment gossip out of the valley to the nooks and corners of Nepalese residences.

However, these exuberant investors have been forced to go through a dry spell in recent months. The regulatory board SEBON hasn't approved any public issue since Samling Power Company opened its IPO on October 21 last year (4th Kartik). The reason is already known to many: SEBON's chairman Bhismaraj Dhungana was sacked by the government for illicitly obtaining shares and acting under power centers. The IPO approval process was thus halted in the absence of a chairman, although there is no rule in theory that prevents the regulator from providing the approval in the chairman's absence.

Kantipur published news today penned by Mr. Yagya Banjade that the regulator had approved the IPO proposals of 5 companies. At the present, there are 13 IPO proposals on SEBON's pipeline that are under preliminary review. SEBON has reviewed and sent its comment to 6 other companies for their respective proposals. Meanwhile, 12 other companies have replied and are under review. Of these three groups, the 12 companies that have completed the multiple phases of review-and-comment are the first to get approval if everything goes well. 

When Sharesansar contacted Mr. Rupesh KC, a SEBON official intimate with the approval process, he informed that SEBON hasn't officially provided the approval yet. Nonetheless, it was made clear that the board of SEBON has decided to transfer the authority of approving public issues to one of the board members in the absence of the chairman.

As such, shareholders can expect to have the IPO proposals approved by SEBON soon. However, SEBON's official response is that these companies have to register their shares and await approval, hence the approval hasn't happened yet.

A) Under Preliminary Review

The following companies are awaiting approval from SEBON for their respective IPO proposals. These companies are in the preliminary phase. 

Molung Hydropower Company Ltd.
(For Local and Public)
Units: 3,531,000
Amount to be raised: Rs. 353,100,000
Issue Manager: Sunrise Capital Ltd.
Date of application: 2078/04/01

Reliable Life Insurance Ltd.
For general public @ Rs.212 (along with premium Rs. 112)
Units: 6,000,000
Amount to be raised: Rs. 1,272,000,000
Issue Manager: Civil Capital Market Ltd.
Date of application: 2078/04/12
Requested to submit additional required documents on 2078/07/15.

Three Star Hydropower Ltd.
(For Local and General Public)
Units: 1,231,250
Amount to be raised: Rs. 123,125,000
Issue Manager: Himalayan Capital Ltd.
Date of application: 2078/04/17

Adarsha Laghubitta Bittiya Sanstha Ltd
Units: 60,000
Amount to be raised: Rs. 6,000,000
Issue Manager: BOK Capital Market Ltd.
Date of application: 2078/06/20

Swetganga Hydropower and Construction Ltd.
(For Local and General Public)
Units: 4,779,000
Amount to be raised: Rs. 477,900,000
Issue Manager: Sanima Capital Ltd.
Date of application: 2078/07/10

Mandakini Hydropower Ltd.
(For Local and General Public)
Units: 1,764,110
Amount to be raised: Rs. 176,411,000
Issue Manager: BOK Capital Market Ltd.
Date of application: 2078/07/14

Sikles Hydropower Limited
(For Local and General Public)
Units: 2,000,000
Amount to be raised: Rs. 200,000,000
Issue Manager: BOK Capital Market Ltd.
Date of application: 2078/07/29

Supermai Hydropower Ltd.
(For Local and General Public)
Units: 1,000,000
Amount to be raised: Rs. 100,000,000
Issue Manager: Sanima Capital Ltd.
Date of application: 2078/08/20

Sanjen Jalavidhyut Co. Ltd.
(For Local)
Units: 3,650,000
Amount to be raised: Rs. 365,000,000
Issue Manager: Citizen Investment Trust
Date of application: 2078/08/20

Eastern Hydropower Ltd.
(For Local and General Public)
Units: 1,240,000
Amount to be raised: Rs. 124,000,000
Issue Manager: NMB Capital Ltd.
Date of application: 2078/08/24

Asian Hydropower Ltd.
(For Local and General Public)
Units: 1,180,000
Amount to be raised: Rs. 118,000,000
Issue Manager: NMB Capital Ltd.
Date of application: 2078/09/11

Rasuwagadhi Hydropower Company Ltd.
(For Local)
Units: 6,842,100
Amount to be raised: Rs. 684,210,000
Issue Manager: Siddharth Capital Ltd.
Date of application: 2078/09/23

People's Power Ltd.
(For Local and General Public)
Units: 3,099,740
Amount to be raised: Rs. 309,974,000
Issue Manager: Prabhu Capital Ltd.
Date of application: 2078/09/27

B) Reviewed and Comment Sent

C) Replied and Under Review