Seventy-five companies across various sectors are awaiting the approval of the Securities Board of Nepal (Sebon) to go public. These companies are awaiting the stock market regulator’s nod to float 375.4m units of ordinary shares to raise Rs 54.15bn from the market.
Hydropower sector companies account for nearly half of the pending applications. According to data provided by the Sebon, 37 hydropower companies have applied to raise around Rs 18.26bn from the market by floating 178.5m units of ordinary shares.
IPO proposals of hydropower companies have stalled at the Sebon for a long time amid conflicting instructions and regulatory concerns. The Public Accounts Committee (PAC) of the House of Representatives had earlier directed Sebon to reject IPO applications from companies with a net worth below Rs 90 per share. The Finance Committee later advised the stock market regulator not to consider net worth as the sole basis for approval. Concerns over project viability further delayed the process. The Sebon leadership was also accused of mobilizing middlemen to collect kickbacks from hydropower promoters for IPO approval.
In terms of the amount to be raised, however, the Manufacturing & Processing sector leads the chart. Companies under this category plan are awaiting the regulator's nod to float 126.9m units of ordinary shares worth approximately Rs 27.04bn.
Similarly, three companies from the Hotels & Tourism sector are preparing to raise Rs 1.42bn through 14.2m units of shares. Meanwhile, four investment companies have applied to float 18.6m shares worth Rs 3.14bn to the general public.
Three microinsurance companies—Protective Microinsurance, Star Microinsurance and Liberty Micro Life Insurance—have also sought Sebon’s nod to issue 6.75m units of shares to raise Rs 675m.
Out of seven microinsurance companies licensed by the Nepal Insurance Authority (NIA) , four three have already issued their ordinary shares to the general public.
Additionally, 10 companies from other sectors have submitted proposals to issue 27.6m shares worth Rs 3.43bn. Once approved, the upcoming listings are expected to inject fresh momentum into the market market, particularly in energy and manufacturing sectors that continue to draw strong investor interest.
