IPO worth Rs 580m approved in first six months

REPUBLICA
KATHMANDU, Jan 23: Securities Board of Nepal (Sebon) - the stock market regulator - granted permission to nine different companies to issue 5.8 million units of primary shares worth Rs 580 million during the first six months of the fiscal year 2010/11.

Five development banks, two finance companies, one insurance company and one hydropower companies are among the firms receiving Sebon´s permission for initial public offerings (IPOs).

Sebon has permitted Kamana Bikash Bank (700,000 units), Country Development Bank (960,000 units), Chilime Hydropower (960,000 units), Gurans Life Insurance (1.08 million units), Professional Bikash Bank (300,000 units) and Purnima Bikash Bank (300,000 units) to go public. Similarly, Rara Bikash Bank, Multipurpose Finance and Hama Merchant and Finance have received permission to issue 660,000 units, 100,000 units and 740,000 units of public shares respectively.

The stock market regulator permitted 17 companies to issue right shares worth Rs 3.41 billion till Jan 10. Nine finance companies, five development banks, two commercial banks and two insurance companies have received Sebon´s nod for right issue. Those getting approval for right issue are Shikhar Finance, Royal Merchant Banking and Finance, Nirdhan Utthan Bank, Kumari Bank, Prabhu Finance, Sanima Bikash Bank, Prime Commercial Bank, Reliable Finance and Miteri Development Bank. Similarly, Mahakali Bikas Bank, NB Insurance Company, Kathmandu Finance, Butwal Finance, Lord Buddha Finance, General Finance, Swabalamban Laghubitta Bikas Bank and Api Finance have also received permission for right issue.

According to Sebon, public issue of 1.98 million units of shares of eight different companies worth Rs 198.2 billion is in the pipeline. Those getting Sebon´s consent for public issue are Investa Finance, Muktinath Bikas Bank, City Homes, Rajdhani Investment Fund, Nepal Industrial Development Corporation, Mercantile Finance, Corporate Development Bank and Shangrila Development Bank.

Similarly, 19 different companies sought Sebon´s permission to issue 57.22 million units of rights shares worth Rs 5.72 million during the first six months of the current fiscal year.