After long halt, SEBON reopens the path for IPOs

The Securities Board of Nepal (SEBON) has resumed the process of approving initial public offerings, which had been halted for a long time.

The board had not granted any company permission to issue ordinary shares since Baishakh 2.

At its board of directors meeting on Asoj 16, the board granted formal approval to Him Parbat Hydropower Limited to issue an IPO.

Board spokesperson Niranjay Ghimire said companies that have applied will be given approval one by one after their documents are examined.

He said companies that fulfill the legal process, standards and regulatory conditions will receive approval in phases, and that the issuance process will no longer be halted from now on.

According to the applications received by the board, companies from various sectors plan to raise about Rs 70.65 billion by selling about 490 million units of shares.

Among them, the manufacturing and processing sector is ahead in both the number of companies and the amount involved. Thirty-two companies in this sector are seeking about Rs 35.71 billion through about 174.2 million units of shares.

In the cement industry, Shaurya, Maruti and Riddhi Siddhi, and in the steel sector, Jagadamba, Ambe and Bhagwati Steels, are preparing to bring shares to market at premium prices.

Pharmaceutical producers Kantipur and Nivix Pharmaceuticals, Asian Batteries, and Annapurna Fish Feed are also in line for approval.

Thirty-four companies from the hydropower sector have also applied for approval.