IPO Shares of Emerging Nepal Limited (ENL) Finally Listed in NEPSE, What's the Opening Range?

55,56,000 unit IPO shares of Emerging Nepal Limited (ENL) have been listed in NEPSE.

Emerging Nepal Limited issued 5,55,600 units worth Rs 5.55 crore as Initial Public Offering to the general public from Magh 26 to Falgun 1, 2078. Out of the offered 5,55,600 units; 2% of the total offered shares to the general public i.e. 11,112 units were set aside for the employees of the company and 5%, i.e. 27,780 units for mutual funds. The remaining 5,16,708 units were for the general public.

NIC Asia Capital Limited was the issue manager for this IPO Issue. The issue had received applications from 23,28,706 valid applicants who had applied for a total of 2,64,01,970 units. The issue was oversubscribed more than 51.096 times. As per the allotment module, a total of 51,670 applicants were allotted 10 units each via lottery and lucky eight applicants got 1 unit extra. The remaining 22,77,036 applicants returned empty hands.

A total of 11,112 units were allotted to the staff of the company and 27,780 units were allotted to mutual funds. In total 2,552 applicants who applied for 28,360 units were disqualified.

The opening range is Rs. 105.11 to Rs. 315.33 for the first transaction.

After the issuance of the IPO which is 10% of the total capital, the paid-up capital has scaled to Rs 55.56 crore and the promoter/public ratio is now 90:10.

Emerging Nepal Limited was established in August 2015 as a public-private partnership (PPP) investment company with the motive to invest in projects from diverse sectors. ENL is promoted by the renowned business groups of Nepal, with the major holding by the Vishal Group and IME Group affiliated entities and individuals (joint stake of more than 50%).

Emerging Nepal Limited will be the 6th company to be listed as an investment company in NEPSE. As such, the addition may play a crucial role in the development of the investment sector and its index. Furthermore, as an investment company, Emerging Nepal Limited may help channel investment funds from the capital market to diversified sectors of the national economy.

During the allotment program, the company CEO clarified that the company's differentiator over other investment companies is that the company is equity-focused, compared to other companies that function as a financial institution focused on lending. The CEO stated that the company's core objective is to invest in core infrastructures like energy, communication, and transportation.