City Hotel IPO Collects Rs. 1.27 Arba From 11.61 Lakh Applicants Till Last Day; IPO Oversubscribed by More Than 9.43 Times

City Hotel Limited issued its Initial Public Offering (IPO) issued 13,55,940 units of shares worth Rs. 13.55 crores to the general public as part of their Initial Public Offering (IPO) from 25th Baisakh till 28th Baisakh, 2080.

The company is issuing 13,55,940 unit shares to the general public of Rs 100 face value. Out of the total 16,74,000 units; 10% i.e. 1,67,400 units have already been allotted to the Nepalese citizens working abroad, whereas 4% i.e 66,960 units were set aside for the employees of the company and 5% of the total offered shares i.e. 83,700 units were set aside for the mutual funds. The remaining 13,55,940 units were for the general public. The total paid-up capital after the IPO allotment would be Rs 1.67 Arba of the company.

According to CDSC, 11,61,280 applicants have applied for a total of 1,27,88,990 units worth Rs. 1.27 Arba till the last day. Thus, the IPO was oversubscribed by more than 9.43 times in terms of the number of units through ordinary applicants as of closing day.

Global IME Capital Limited was appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 2,000 units.

CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB+ (Is)’ assigned to City Hotel Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.

City Hotel Limited, incorporated on December 05, 2007, is the developer and operator of a new five-star hotel under the brand name "Hyatt Place" in Soaltee mode, Kathmandu. The Hyatt Place is a mixture of modern and cultural architecture serving its guests in various countries. The Hyatt Place, Kathmandu is operating at 10 Ropani land located at Red Cross Road, Soalteemode, Tahachal, Kathmandu, Nepal. The hotel has 153 rooms which belong to the Golyan Group of companies. The company is being promoted by 7 shareholders who have infused total paid-up equity of Rs. 1.50 arba as of now.