December 7, 2023 | Investopaper
IPO Allotment Of Nepal Warehousing Company Limited
Himalayan Capital Limited, the issue manager for the initial public offering (IPO) of Nepal Warehousing Company Limited, has concluded the IPO allotment process on Wednesday.
After the allotment, 1,14,125 applicants have received 10 shares each through lottery.
A total of 11,91,988 valid applicants had subscribed for the shares. With the allotment, more than 10.77 lakh applicants were left empty-handed.
To view the IPO result of Nepal Warehousing Company Limited, click the link below:
Second Phase: IPO To General Public
After issuing shares to the foreign employed Nepalis in the first phase, the company had sold shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public was open from Mangsir 10, 2080 BS.
The company had issued 11,41,250 shares in the second phase of the IPO.
68,750 shares were allotted to the mutual fund schemes while 27,500 shares were reserved for the employees of the company.
Due to over-subscription of shares, the IPO to general public was closed on Mangsir 13, 2080 BS.
One could apply for a minimum of 10 shares and a maximum of 50,000 shares.
First Phase: IPO To Foreign-Employed Nepalis
In the first phase of the IPO, the company had floated 1,37,500 shares to the foreign-employed Nepalis (10% of general public’s quota) from Karthik 10, 2080 BS. The IPO to foreign-employed Nepalis was closed on Karthik 24, 2080 BS.
Interested foreign-employed Nepalis could apply for a minimum of 10 shares and a maximum of 50,000 shares.
For this purpose, Securities Board Of Nepal (SEBON) had given the permission to the company on Ashwin 10, 2080 BS. The company had submitted the application to the board on Poush 22, 2079 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
In total (including the first and second phase), the company plans to issue 13,75,000 shares in the public offering. At a par value of Rs 100, the IPO amounts to Rs. 13.75 crores.
Himalayan Capital Limited is the issue and sales manager. An agreement has been reached between the company and Himalayan Capital on this regard. The agreement was signed by Mr. Parmeshwar Pant, Chief Executive Officer of Himalayan Capital and Mr. Jay Mukunda Khanal, CEO of Nepal Warehousing Company Limited.
Nepal Warehousing Company Limited caters to the warehousing needs of the farmers, traders, millers and businessmen who deal in trade of grains for their commercial and industrial purposes. The company has installed capacity of 55,000 metric tonnes in three different places located at Province 1, Madhes Province and Lumbini Province.
After the IPO (if fully subscribed), the general public will possess 20 percent shares in the company while the promoters will hold the remaining 80 percent shares.