SEBON amends the provision of institutional buying & maximum limit in IPO/FPO issue; amendments applicable to the ongoing NMB FPO issue as well

Securities Board of Nepal (SEBON) has amended its provision on application for IPO and FPO issue.

According to Mr. Niranjaya Ghimire, the Deputy Spokesperson of SEBON, now the issuing company can decide the maximum units of shares to be applied by the interested investors in the IPO and FPO issue. Hence, the interested investors can apply for as many shares as mentioned as maximum limit in the offer letter published by the company. Previously, the investors could apply for maximum 0.5% of the total IPO and/or FPO issue.

Mr. Ghimire also stated that both general individuals and institutional investors can apply for the IPO issue with premium or FPO issue from the very first day of the issue. Previously, the institutional investors could only apply in case of the undersubscription of the issue by the general individuals. However, in the IPO issue at par value, priority shall be given to the general individuals, he said.

Answering the query regarding whether application of both individual and institutional investors for IPO issue with premium or FPO would affect the general individual investors, Mr. Ghimire said that since minimum 10 units should be allotted to the individual applicants, it would not affect the individual investors at all.

The existing provision has been changed viewing the current market condition and the latest IPO/FPO issues. This provision is also expected to minimize the cost. Also, the decision was made with the views of the related stakeholders said Mr. Ghimire.

This provision has already been implemented from Ashadh 4, 2075. Hence, this provision applies not only to the upcoming IPO/FPO issues but also to the ongoing NMB FPO issue as well.