SEBON to restart IPO approvals

The Nepal Securities Board (SEBON) currently has 76 companies awaiting approval to issue Initial Public Offerings (IPOs). During his first day in office at SEBON’s Satdobato headquarters on Wednesday, newly appointed Chairman Santosh Narayan Shrestha pledged to restart the stalled IPO process. “All IPO-related work at SEBON will now proceed regularly,” Shrestha told ApEx. His initial decision approved Everest Bank’s bond issuance, and he emphasized his commitment to collaborating with stakeholders to modernize and advance Nepal’s capital market. Shrestha highlighted the need to address challenges in the short, medium, and long term, prioritizing previously delayed initiatives. He affirmed that SEBON’s goal is to strengthen Nepal’s economy through capital development and mobilization, with investor safety as a top priority. “The stock market relies on investor confidence, and we are committed to maintaining that trust,” he said.

SEBON recently approved the IPO issuance of Guardian Micro Life Insurance on Nov 22, granting permission for 2.25m shares, equivalent to 30 percent of the company’s 7.5m shares at a face value of Rs 100 each. Among the 76 companies awaiting approval, the majority—37—are in the hydropower sector. Other sectors include five companies in hotel and tourism, two in investment, 13 in manufacturing, one in microfinance, three in microinsurance, and 15 in miscellaneous categories. Collectively, the companies aim to issue over 333.43m shares worth Rs 485.84bn. While most shares are priced at Rs 100 each, some, such as Akama Hotel and Nepal Broadcasting Channel, are priced at Rs 50. A few companies propose shares at a premium, with prices ranging from Rs 210 (Pratikita Shivam Holdings) to Rs 400 (Chhayadesi Complex).

Since Chairperson Shrestha’s appointment, the stock market has shown continuous growth. The NEPSE index recorded a double-digit gain of 38.81 points on Wednesday, reaching 2,755.47. This marked the fourth consecutive day of upward momentum. On Wednesday alone, 17.18m shares from 316 companies were traded for Rs 9.31bn, with eight companies, including Vishal Bazar, Karnali Development Bank, and Support Microfinance, hitting the upper circuit with a 10 percent increase. While prices for 199 companies rose, 40 saw declines, and five remained stable. Despite the overall bullish trend, some investors face losses, such as those holding shares in Mithila Microfinance, which dropped by 10 percent. Janaki Finance led trading by value, with shares of NRN Infrastructure, People’s Hydropower, and Nepal Finance also seeing significant transactions worth Rs 240m–240m.