List of Companies Whose IPO Shares Have Not Yet Listed on NEPSE; 9 Companies Are Also Issuing IPO Soon

The process by which a privately held company becomes a publicly traded company by selling its stock to the general public is known as an initial public offering (IPO). A company can raise money by selling ownership stakes to a variety of investors through an IPO. It is a method for a companies to obtain funding from the general public in order to support operations or grow.

Typically, a company that wants to go public hires an investment bank to handle the IPO. The investment bank and the business will collaborate to decide on the right stock price and the quantity to be distributed. After that, the business will submit a registration statement to the Securities and Exchange Commission (SEC) with finances and other details about the business.

The companies can start selling its stock to the general public once the Security Board of Nepal (SEBON) has approved the registration statement. Typically, this entails going on a "road show," where companies’ executives and the investment bank pitch the stock of tck exchange, the IPO is then finalized.

A total of 14,75,008 individuals registered for Nepal Infrastructure Bank Limited's (NIFRA) IPO in 2021, which was the country's largest IPO ever. This was due to the wide spread craze for IPOs and the opening of DEMAT accounts which grew quickly. This demonstrates the broad interest of Nepalese citizens in and participation in Nepal's stock market.

What the markets and market-makers have achieved in the past two years is more than what they could do during the past two decades, as the number DEMAT accounts have increased significantly during these two years. According to CDS and Clearing Limited's official website, there are a total of 5,599,724 Demat accounts in the country. Likewise, 4,677,345 of them use Meroshare, the online application, and shares settlement portal.

Following the IPO trend, we will see a list of companies in this article that have already issued IPOs but have not yet been listed on NEPSE, as well as those that will shortly issue IPOs to the general public.

As seen, out of the 10 companies that have already allotted IPOs to the general public, 4 companies i.e Molung Hydropower, Aatmanirbhar Laghubitta, BPW Laghubitta and Sanima Middle Tamor Hydropower companies are yet to be listed on Nepal Stock Exchange.

On the other hand, Kalinchowk Darshan Limited and Asian Hydropower Limited IPO shares got listed today, 22 March 2023. 

In a conversation with the NEPSE spokesperson, Murahari Parajuli about the two-month delay in listing of Kalinchowk Darshan Limited's initial public offering (IPO) shares, has clarified that one of the causes of the delay could be the company's failure to submit all of the required documentation. Furthermore, if the company submits all necessary paperwork and documents, the companies are listed within one week by NEPSE. 

List of Companies that are Issuing IPO Soon: 

Also, Sagarmatha Jalbidhyut Company Limited (SMJCL) is currently opening the issue of 35,81,760 unit shares as an Initial Public Offering to the general public from 8th Chaitra, 2079. The early closing date of this issue is on 12th Chaitra and if the issue is not fully subscribed, it can be extended up to 22nd Chaitra, 2079.