SEBON tries to clear dust about over pricing of recent FPO shares; claims all legal requirements duly fulfilled before each FPO issuance

Securities Board of Nepal (SEBON) has expressed its deep concern over the recent controversies regarding the pricing of FPO shares. The board has therefore reaffirmed the procedures which have long been followed by all the stakeholders while fixing the price of the shares with premium during FPO issuance.

The board has made it clear that all the FPO issuances which have recently appeared in the market have been following the boards’ guidelines which was issued on Shrawan 25, 2073 to facilitate the pricing mechanism of FPO shares. SEBON has reiterated that while fixing the FPO price under internationally accepted standards, the net profit of the company, discounted cash flow, its Net worth per share and average market price of the company in the last 180 days all are  taken into account.

The detailed statement from the board is apparently directed towards clarifying the doubts of the investors regarding the accusation among certain section of investors who think that the board has failed to curve the over pricing of FPO shares in recent days especially in case of BPCL, NMB and NBL which seemed to be closer to their market prices in secondary market.