Nagarik Stock Dealer Company To Float IPO Worth Rs 1.50 Arba
December 13, 2021 | Investopaper
Nagarik Stock Dealer Company Limited is going to issue an initial public offering (IPO). The company is taking the agenda of floating the shares to the public to its 2nd annual general meeting (AGM) to be held on Poush 23, 2078 BS [January 7, 2021]. If approved by the AGM, the company will begin the procedures regarding the issue of IPO.
The company is planning to sell a 30 percent share of its total issued capital that stands at Rs 5 Arba. Hence, it will issue 1.5 crores unit shares at a par value of Rs 100. The total public issue amounts to Rs 1.50 Arba.
As of Ashad’s end 2078 BS, Nagarik Stock Dealer Company has a paid-up capital of Rs 3.50 Arba. With the issue of shares to the public, the capital will increase to Rs 5 Arba (if fully subscribed).
Nagarik Stock Dealer Company is a subsidiary of Citizens Investment Fund, established to operate as a securities dealer to expedite the entry of institutional investors in Nepal’s capital market. Citizen Investment Fund has a 51 percent share in the company. Likewise, Reinsurance Company and Nepal Telecom have 10 percent and 9 percent ownership respectively.
After the approval from the AGM, the company has to appoint the issue and sales manager for the IPO. Then, it should submit the application to the Securities Board Of Nepal (SEBON) for the issuance of shares. Only after receiving approval from SEBON, the company can float the shares to the public.
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