Kathmandu, Nov.
5: In the first trimester of the current Fiscal Year 2018/19, the Securities
Board of Nepal (SEBON) had allowed four companies to issue Initial Public
Offering (IPO) worth Rs. 1.88 billion.
Seeking approval
for the IPO, 25 companies have applied to the SEBON in the first three month of
the FY but only three hydroelectricity companies and one microfinance company
were allowed to float the IPO.
“Applications of
10 companies are under primary review and two of them have been asked to submit
additional documents. Four microfinance companies are informed to issue IPO as
per the Bank and Financial Institution Act, 2016,” said the SEBON on Sunday.
Garjanjang
Hydropower Limited, Laughing Buddha Power Nepal Limited and Unique Hydel
Company Limited have not submitted additional required documents even after a
long time.
The number of
companies seeking approval for IPO and the amount both have increased this in
comparison to the first three months of the last fiscal.
Last year, only
11 companies have applied for the IPO approval and only one company was allowed
to issue IPO worth Rs. 18 million.
In the first
trimester, applications of 11 companies for the rights shares are under
processing at the capital market regulator, of which two are new while 31
companies were in the process of rights share last year.
“As most of the
banks and financial institutions have met the paid-up capital increment target
as set by the Nepal Rastra Bank, issuance of rights share has gone down,” said
SEBON.
Similarly, it
has given permission to two companies to issue debentures worth Rs. 3.83
billion. No company had applied for the debenture last year.
Likewise, the
SEBON has registered bonus shares of 17 companies worth Rs. 5.76 billion which
is 543 per cent higher than of the last year.
Published in The Rising Nepal daily on 6 November 2018.
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