October 5, 2023 | Investopaper
After the first phase, Sonapur Minerals and Oil Limited is currently issuing the shares to the general public in the second phase of an initial public offering (IPO). The IPO to general public is open from Ashwin 14, 2080 BS.
The company is selling 97,32,544 shares at Rs. 237.58 per share (Rs. 100 par value plus Rs. 137.58 premium) to the general public.
Interested investors can apply for a minimum of 10 shares and a maximum of 15,00,000 shares.
Due to full-subscription of shares, the IPO will close on Ashwin 18, 2080 BS. Earlier, if fully subscribed, the public offering was set to close on Ashwin 17, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company has allotted 6,08,284 shares to the mutual fund schemes while 6,08,284 shares are reserved for the employees of the company.
First Phase: IPO To Locals & Foreign Employed Nepalis
In the first phase of the IPO, the company had shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Shrawan 29, 2080 BS.
The IPO to the foreign-employed Nepalis was closed on Bhadra 11, 2080 BS. The company had sold 10,76,268 shares to the Nepalis in foreign employment (10 percent from general public’s quota).
Similarly, the IPO to locals was closed on Bhadra 26, 2080 BS. Earlier, if fully subscribed, the IPO to locals was set to close on Bhadra 11, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company had issued 5 percent of the issued capital i.e. 15,37,525 shares to the locals of Dang and Rolpa district.
The locals could apply for a minimum of 10 shares and a maximum of 15,00,000 shares.
The company is going to issue shares to the locals and the employees at Rs. 225 per share (Rs. 100 par value plus Rs. 125 premium). Similarly, the company will sell the shares to the general public at Rs. 237.58 per share (Rs. 100 par value plus Rs. 137.58 premium)
For this purpose, Securities Board of Nepal (SEBON) has given permission to the company on Shrawan 17, 2080 BS. The company had submitted the application to the board on Ashwin 4, 2079 BS for the issuance of shares. Only after the approval from SEBON, the company can float the shares to the public.
The company has appointed NIBL Ace Capital Limited as the issue manager for the public offering. The agreement was signed by Nipesh Tayal, Managing Director of Sonapur Minerals and Oil, Mekh Bahadur Thapa, Deputy Chief Executive Officer of NIBL Ace Capital and Sachindra Dhungana, Assistant General Manager of NIBL Ace Capital.
After the IPO, the general public along with locals will possess 40 percent ownership in the company while the promoters will hold the remaining 60 percent shares.
Sonapur Minerals & Oil Ltd. is the largest cement manufacturing company in western Nepal. It is spread across 100 acres of land in Bijauri, Dang. The company sells OPC cement under the brand name ‘Sona Cement OPC’ and PPC under the brand name ‘Sona Shree PPC Cement’ and ‘Sonatech PPC Cement’.