112 companies await Sebon nod for IPOs worth Rs 71.29 billion

KATHMANDU: The pipeline of companies seeking to go public is growing as the Securities Board of Nepal (Sebon) has not approved an initial public offering (IPO) in the past six months.

Sebon last approved IPO applications on April 15 when it permitted Mount Everest Power Development Ltd, Sarvottam Paints Industries Ltd and Everest Color Ltd to go public.

According to the latest data published by Sebon on Wednesday, 112 companies are awaiting permission to issue shares worth a combined Rs 71.29 billion at face value and premium prices. The companies have sought approval to float 496.92 million units of shares.

Some of these applications have been pending with Sebon since June 2023.

Of the companies awaiting approval, 35 are in Hydropower, 32 in Manufacturing & Processing, 18 in Hotels and Tourism, nine Investment, three in Non-Life Insurance and 15 in “Others” categories.

The 18 companies in the Hotels and Tourism sector have applied to issue 58.21 million units of shares to raise a combined Rs 6.45 billion. The category includes companies ranging from cable car operators to hotels and airlines. Of them, Shree Airlines is looking to raise the highest amount of Rs 1.26 billion from the market. The airline has sought approval to issue 6.3 million units at a premium of Rs 200 per share.

Similarly, 35 hydropower companies have applied to issue 174.29 million units of shares worth Rs 17.78 billion. Siuri Nyadi Power Ltd has sought approval for the largest issue in the category. The company is planning to float 30.36 million units to raise Rs 3.04 billion.

Nine companies in the Investment category have applied to issue 32.05 million units of shares to raise a combined Rs 4.48 billion. Shivam Holdings Ltd plans to raise the largest amount in the category, Rs 2.43 billion, by issuing 11.6 million units at a premium price of Rs 210 per share.

Meanwhile, 32 Manufacturing & Processing companies have sought Sebon approval to raise Rs 35.71 billion by issuing 174.19 million units of ordinary shares. Eight of these companies are seeking to issue shares at premium prices. Maruti Cement has proposed the highest premium of Rs 425 per share.

Jagdamba Steels Ltd plans to raise the largest amount among companies in the category. The steel-maker is raising Rs 6.62 billion from the market by issuing 20.07 million units at a premium price of Rs 330 per share.

Three microinsurance companies have also applied to raise a combined Rs 675 million by issuing 2.25 million units of shares each in the Non-Life Insurance category.

Similarly, 15 companies in the “Others” category have applied to raise a combined Rs 6.18 billion by issuing 51.42 million units of shares. Two of these companies have proposed issuing shares at premium prices. Dish Media Network Ltd has sought approval for the largest IPO in the category. The DTH and internet service provider is planning to raise Rs 1.97 billion from the market by issuing 19.7 million ordinary shares.

Dr Gopal Bhattarai, who took over as Sebon chairperson in the second week of June, has not moved forward with IPO approvals.