Upcoming IPO in Nepal: In the near future, more than a dozen hydropower companies are going to issue IPOs to the general public. Those companies have already given permission to the Securities Board of Nepal (SEBON) for the issue of IPO.
These companies are going to issue shares at the rate of Rs 100 per share. They will come to the share market after getting permission from the SEBON. Shares should be issued within two months of getting permission from the board.
Currently, the primary issue of 20 companies from different sectors is coming to the market. Of them, 12 are hydropower companies, 4 are microfinance companies and two are insurance companies. Most of the companies are currently in the process of issuing shares to the locals and the rest to the public. As per the list of the SEBON, 20 companies from different sectors are issuing 52.357 million shares worth Rs 5.90 billion.
There are 40 hydropower companies listed in the share market. This number is expected to increase to more than 60 this fiscal year. Looking at the number of companies that have not been listed even after the issue of shares, are preparing for the issue and have applied for the issue of permission, it is seen that the number of companies listed in the share market will reach more than four dozen within the current fiscal year.
As there are many hydropower companies in the construction phase in Nepal, many hydropower companies have been seen issuing shares in recent days. Of the total companies listed on the stock exchange, the hydropower group has an average share of only 8.9 percent. As the number of listed companies increases, the share of the hydropower group in the total turnover will be increased. Experts also say that investors will get investment diversification (portfolio management) facilities.
The hydropower company should give at least a 10 percent share to the project affected locals. After the distribution of shares to the locals, the shares should be issued to the general public. According to the new arrangement, companies in the productive sector including hydropower should issue at least 10 percent more shares to the public except those affected by the project. The financial sector has been dominating the stock market for a long time.
Even three or four years ago, banks and financial institutions, and insurance companies accounted for 80 to 85 percent of the total listed companies. That is why the share market has been badly affected by the small directives of the National Bank and the Insurance Committee. However, the share of financial institutions and insurance companies in the secondary market has been declining in recent months. Other sectors including hydropower are on the rise. Similarly, financial institutions and insurance accounted for 68.9 percent of the total companies listed in NEPSE till last July.
In recent years, the government and regulatory bodies have been accused of failing to bring productive (real) sector companies into the stock market as expected. Experts say that the dominance of financial sector companies in the share market will decrease with the increase in the number of hydropower companies.
Among the companies that have applied are Sayapatri Hydropower, Upper Solu Hydro Electric Company, Upper Hewakhola Hydropower, Molung Hydropower, River Falls Power, Three Star Hydropower, Rapti Hydro, and General Construction, Dordikhola Hydropower, H.P. Green Venture Limited Company is going to bring shares for both locals and the general public. The Securities Board of Nepal (SEBON) has already sent feedback on the applications of Bindhyavasini, Himalayan, Balefi, and Green Ventures. The applications of the remaining companies are in the preliminary study stage.
Among the companies that have applied for share issue are Jalpa Samudayik Laghubitta Bittiya Sanstha Limited, Rastra Utthan Laghubitta Bittiya Sanstha Limited, Upakar Laghubitta Bittiya Sanstha Limited, and NESDO Sambridha Laghubitta Bittiya Sanstha Limited. The insurance groups are Reliable Life Insurance and IME Life Insurance Company. Emerging Nepal and Dish Media Network has also applied to the Securities and Exchange Board Nepal (SEBON) for the issue of shares to the public.
Upcoming IPO in Nepal
List of Companies for Upcoming IPO:
|Name of Companies||IPO (units of Share)|
|Upper Solu Hydro Electric Company||3307500|
|Upper Hewakhola Hydropower||200000|
|River Falls Power Limited||3430000|
|Three Star Hydropower||1231250|
|Dordi Khola Jal Bidyut||2951929|
|Green Venture Limited Company||6250000|
|Jalpa Samudayik Laghubitta Bittiya Sanstha Limited|
|Rastra Utthan Laghubitta Bittiya Sanstha Limited|
|Upakar Laghubitta Bittiya Sanstha Limited|
|NESDO Sambridha Laghubitta Bittiya Sanstha Limited|
|Reliable Life Insurance|
|IME Life Insurance|
|Dish Media Network Limited|
|Emerging Nepal Limited|