SEBON enforces Book building Bylaws 2077; makes an attempt to attract more real sector companies into secondary market

Wed, Aug 12, 2020 10:44 PM on Stock Market, Featured,

Securities Exchange Board of Nepal has implemented Book Building Bylaws 2077 that would facilitate the process of floating ordinary shares for both institutional and general investors.

Under this bylaws, a public institution willing to float its ordinary shares in an IPO will first need to fix a base rate of the stock after having a detailed consultation with interested institutional investors. The price range can then be determined within 20% upper and lower limit of the base rate. The interested institutional investors will then be asked to submit their bids with the bid amount not exceeding the 20% upper limit mark. The bid amount can either be deposited via bank account or through Good for Payment cheque.

On the other hand, General investors will receive 10% discount in the cut-off amount and can apply for minimum 50 unit shares.

The board hopes that the new Book building Bylaws will encourage more real sector companies to enter the secondary market and promote more professional growth in the securities market of the nation, as per the media statement.

 

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