SEBON Permits Nine New Institutional Investors For Book Building Process
April 19, 2021 | Investopaper
Nine institutional investors have been added to determine the price of the shares to be issued through book building method. The board, which had earlier given permission to 74 eligible institutional investors, has given permission to nine more institutions on Baisakh 3, 2078 BS. The added institutional investors are Siddhartha Insurance Limited, Jay Ganesh Investment Company, ICFC Finance, J-Nex Investment, Muktinath Bikas Bank, Pokhara Finance, Swabhiman Laghubitta, Shree Investment and Finance and Nepal Bank.
To view the list, Click Here
These institutional investors will help determine the intended value of the shares to be issued to the public through book building. The IPO will be issued from the book building method in the form of the current share auction process. When issuing an IPO through this method, the intended value has to be obtained from qualified institutional investors. The IPO issuer has to determine the base price by studying the intent value obtained from the qualified institutional investor and fix the price limit by adding 20 percent to the base price or lowering the price by 20 percent.
Eligible institutional investors who have received approval are required to study the technical, financial, management and future plans of the IPO company and submit an informed price to assist in pricing. After setting the price limit, 40 percent of the shares will be issued to institutional investors and 60 percent to the general public. Institutional investors will not be able to trade shares for six months from the date of listing.
The board has implemented book building method since Shrawan 28, 2077 BS with the objective of bringing real sector companies in the capital market.
Recommended:
Book Building Method In Nepal: Provision To Issue IPO At More Than Rs 100
