The Securities Board of Nepal (Sebon) approved primary shares worth Rs 20.78 billion, of 21 companies, in the last Fiscal Year 2017/18. The capital market regulator allowed the companies to issue a total 192.88 million units of share.
More than half of these companies who wanted to draw capital from the public were from the hydropower sector. The Sebon data shows that 13 hydropower companies acquired approval from the board to float their shares to public.
While some of the companies have already issued their primary shares, others are still in the process to go to the public to collect the capital.
Some of the notable companies receiving Sebon approval to issue initial public offerings (IPOs) include: Shivam Cements Ltd, Panchakanya Mai Hydropower Ltd, Ankhukhola Jalbidhyut Company Ltd, and Support Microfinance Bittiya Sanstha Ltd.
Shivam Cements Ltd, the first cement company to go into IPO, is floating 5.28 million units of share at Rs 400 for the public and Rs 300 for project-affected locals. In total, the cement manufacturer plans to collect Rs 2.02 billion.
Likewise, Panchakanya Mai Hydropower Ltd and Aankhukhola Jalbidhut Company Ltd have also got approval to float 110 million units and 8 million units of share, respectively. Support Microfinance Sanstha Ltd has got the approval to issue 600,000 units to collect Rs 18 million.
Radhi Bidyut Company Ltd, Unnati Microfinance Bittiya Sanstha Ltd, Samudayik Laghubitta Bittiya Sanstha Ltd and Aarambha Microfinance Bittiya Sanstha Ltd are other companies who have got the go-ahead from Sebon to float their shares to the public.
Similarly, Union Hydropower Ltd and Ghalemdi Hydro Ltd have acquired the permission from Sebon to float their shares to the locals affected by their projects.
Rasuwagadhi Hydropower Company Ltd is planning to float 51.32 million units of share worth Rs 5.1 billion to the employees of promoter shareholding company, employees having membership of Employee Provident Fund and employees of lending institutions, according to the Sebon. The company is scheduled to float shares to the general public in the next phase.
Sanjen Jalavidhyut Company Ltd is in the process to float its 27.38 million units of shares worth Rs 2.74 billion to employees of promoter shareholding company, employees having membership of Employee Provident Fund and Employees of lending institution.
The much-awaited mega IPO of the Upper Tamakoshi Hydropower Ltd also received approval in the last fiscal year. According to the plan, the hydropower company will raise a total of Rs 1.59 billion from selling 15.89 million units of shares to local people and the general public. Currently, the offering is open to the locals and residents of Dolakha while the general public will be able to subscribe its shares in the next round, according to officials of the hydropower company.
According to stock analysts, some of the companies who have already received the approval are keeping their IPO plans on hold due to fears that the primary shares might be undersubscribed amid bearish stock market.
Some companies who have recently floated their shares under their further public offering (FPO) have received lukewarm response from investors.