NIC Asia Laghubitta set to issue largest IPO from microfinance sector worth Rs.47.55 Crore; SEBON adds the issue to pipeline

Securities Exchange Board of Nepal (SEBON) has added proposed IPO issue of NIC Asia Laghubitta Bittiya Sanstha Limited under preliminary review in the latest list of IPO issues in pipeline published.

The company is proposing to come out with an IPO of 4,755,000 equity shares with a face value NPR 100 each, at par. The amount of the issue is Rs.47.55 Crore. This issue will be the largest IPO from the microfinance sector in the Nepalese Market.

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

CARE Ratings Nepal Ltd. (CRNL) has assigned grading of “CARE-NP IPO Grade 4+” to the proposed Initial Public Offer (IPO) of NIC Asia Laghubitta Bittiya Sanstha Ltd. (NALB).

NALB is a “D” class National Level microfinance institution incorporated on July 25, 2017, licensed by Nepal Rastra Bank on November 24, 2017 and commenced operation on November 28, 2017. It is 100% subsidiary company of NIC Asia Bank Ltd. and primarily engaged in providing microfinance loan based on Joint Liability Group (JLG) model with each group consisting of minimum five members. As on October 17, 2019, it has Rs 1,005 Mn paid up share capital which held by promoter shareholder. After issue of proposed IPO, the share capital of the company is expected to be Rs 1,480 Mn which will be held by promoter and public shareholders in 67.87:32.13 ratio.