December 7, 2022 | Investopaper
WEAN Nepal Laghubitta Bittiya Sanstha Limited (WNLB) is planning to issue the Follow-on Public Offering (FPO). The company has appointed Nepal SBI Merchant Banking Limited as the issue manager for the FPO.
An agreement has been reached between these two companies in this regard. Dev Raj Adhikhari, CEO of Nepal SBI Merchant Banking and Basanta Bahadur Shakya, CEO of WEAN Nepal Laghubitta inked the agreement.
The company plans to sell 51,293 shares at a premium over par value of Rs. 100 in the FPO.
Now, the company need to submit the application to the Securities Board of Nepal (SEBON) seeking permission for public issuance. If SEBON provides the approval, only then the company can float the shares to the general public.
WEAN Laghubitta and Nepal Seva Laghubitta merged to form ‘WEAN Nepal Laghubitta Bittiya Sanstha Limited’ and commenced joint operation from Karthik 15, 2078 BS. In order to maintain the shareholding ratio at 70:30 (promoter-public), the company has decided the issue the FPO.
At present, the company has a paid-up capital of Rs 7.92 crores.
What Is FPO?
FPO (Follow-On Public Offering) is the process of issuing shares to the public by the company already listed on the stock exchange. If the company issues shares to the public for the first time, it is IPO (Initial Public Offering). FPO is any additional issue of shares by the company after IPO.
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