January 8, 2021 | Investopaper
Forty-six institutional investors are eligible to apply for book building. Of the 62 companies that have applied to participate in the book-building process, 46 have been approved by institutional investors. Securities Board of Nepal (SEBON) has given approval to only 46 companies as eligible institutional investors after studying the financial and managerial aspects of the applications submitted by 62 companies.
Most of the 46 companies are merchant bankers. Also, among the eligible institutional investors are Siddhartha Bank, Machhapuchchhre Bank, Global IME Bank and Prabhu Bank.
The board had issued a notice on Bhadra 3 requesting the eligible institutional investors to take approval for participating in the IPO through book building method.
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Eligible institutional investors approved by the board should assist in determining the fair price of the IPO by submitting the intent value of the securities in an informed manner based on a study of the technical, financial, management, future plans and strategies of the issuing company.
SEBON had implemented book building system in IPO from Shrawan 28, 2077 BS. In this system, the sales manager or guarantor invites bids from various potential investors during the period of public offering. Eligible Institutional Investors submit their bids within the price range set by the issuing company. They submit the bids based on the financial statements, credentials, performance appraisals, etc. of the issuing company.
To view the list of eligible institutional investors, Click Here.