IPO Proposals of These Five Companies Finally Approved by SEBON; 2 Each from Life Insurance, Hydropower and 1 from Investment Sector

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of 5 different companies.

Hathway Investment Nepal Limited will now issue 29.25 lakh shares which will raise Rs. 14.62 crores for the company since each share will be issued at a par value of Rs. 50 per share. This is 12.5% of the company's issued capital. The current paid-up capital of the company is Rs. 1.02 Arba which will reach Rs 1.17 Arba after IPO allotment.

Global IME Capital Limited has been appointed as the issue manager for the proposed IPO issuance. The proposal was approved by SEBON on Ashad 17.

Hathway Investment Nepal Limited is an investment company, registered as a public company in 2009 and commenced its operation in 2011. Hathway invests/trades in various listed, unlisted securities, and real estate, among others. The company’s registered and corporate office is in Hathway Complex, Lainchaur, Kathmandu.

Similarly, Mid Solu Hydropower Company Limited will now issue 14,96,800 equity shares at a par value of NPR 100 each. The amount of the issue is Rs. 14.96 Crore. This is 20% of the company's issued capital. The total paid-up capital after the IPO allotment would be Rs 74.84 crore of the company.

NIC Asia Capital Limited has been appointed as the issue manager for the proposed IPO issuance.

Mid-Solu Hydropower Limited was incorporated on April 19, 2017, as a private limited company and converted to a public limited on June 30, 2021, to facilitate public participation. The company is currently developing a 9.5-MW Mid-Solu Khola HPP in Solukhumbu district, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40.9% probability of exceedance.

Likewise, Mandu Hydropower Limited will now issue 1,636,370 equity shares at a price of Rs. 206 per share (Rs 100 face value + Rs 106 premium price) to the general public and locals. The IPO issue will raise a total of Rs. 33.7 Crores for the company. Out of this Rs 17.34 Crores will be the premium amount and the rest would add to the paid-up capital.

This is 12% of the company's issued capital i.e. Rs. 1.36 Arba. Prabhu Capital has been appointed as the issue manager for the IPO issuance.

Furthermore, Citizen Life Insurance Company Limited will now issue 11,250,000 equity shares at a price of Rs. 244 per share (Rs 100 face value + Rs 144 premium price) to the general public. Out of a total of 11,250,000 unit shares, 5,62,500 units will be issued to the employees of the company at a par value of Rs. 100. The IPO issue will raise a total of Rs. 2.66 Arba for the company. Out of this Rs 1.53 Arba will be the premium amount and the rest would add to the paid-up capital.

This is 30% of the company's issued capital i.e. 3.75 Arba. NIBL Ace Capital has been appointed as the issue manager for the IPO issuance.

Moreover, Sun Nepal Life Insurance Company will be issuing 9,600,000 equity shares at a price of Rs. 239 per share (Rs 100 face value + Rs 139 premium price) to the general public. Out of a total of 9,600,000 unit shares, 4,80,000 units will be issued to the employees of the company at a par value of Rs. 100. The IPO issue will raise a total of Rs. 2.22 Arba for the company. Out of this Rs 1.26 Arba will be the premium amount and the rest would add to the paid-up capital.

This is 30% of the company's issued capital i.e. 3.2 Arba. Nepal SBI Merchant Banking has been appointed as the issue manager for the IPO issuance.