Kathmandu. Nine companies in the hotel and tourism sector, including two five-star hotels, are in the pipeline to raise share capital by issuing shares to the general public. According to the Securities Board of Nepal, a total of 43.32 million shares of hotel and tourism sector companies have applied for the primary issue.
Apex Hospitality, Hotel Forest Inn, Orchid Holdings, Akama Hotel Limited, Thamel Plaza Hotel and Suites Limited, Barnabas Museum Hotel Limited and Mountain Glory Limited have IPOs in the pipeline.
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Hotel and tourism companies in the pipeline for approval of IPO issue. Source: Securities Board of Nepal [/caption]
Annapurna Cable Car and Bandipur Cable Car and Tourism Limited, which operate cable cars, have also applied for ipo issue.
Orchid Holdings Limited, which operates four-star hotel Crown Imperial, has applied for a total of 11.5 million units of ordinary shares. The company plans to raise a total of Rs 1.15 billion from the general public for its paid-up capital.
Hotel Forest Inn, which operates five-star Hotel Holiday Inn in Budhanilkantha, has applied for 9.8 million units of shares. The company is owned by Energy Minister Deepak Khadka.
Mountain Glory, which operates a resort in Pokhara, plans to add Rs 400 million in paid-up capital from 4 million units. It is a four-star level luxury resort.
Baranvas Museum Hotel, which operates a small luxury hotel under the Hilton brand in Naxal Garidhara, is planning to raise Rs 396 million by issuing 3.96 million units of ordinary shares.
Apex Hospitality has applied for an IPO in Sebon to raise Rs 240 million in paid-up capital by issuing 2.4 million units. The company operates a three-star hotel, cinema hall and shopping mall in Damaili. Siddhartha Hospitality has partnered with Business Group to operate the hotel.
Akama Hotel Limited, which operates five-star hotel Akama in Dhumbarahi, has offered to issue shares at the rate of Rs 50 per share. The hotel plans to raise Rs 225 million by issuing a total of 4.5 million units of shares. Sanima Bank and Sanima Group have invested in Akama Hotel.
Thamel Plaza Hotel and Suites operates a four-star hotel in Thamel under the ramada incore brand. It is the brand of the American hotel network. The company plans to issue 1 million units of shares for a capital of Rs 100 million to add capital to the hotel and repay the bank loan.
According to the Securities Board, Annapurna Cable Car has applied for 3.1 million units and Bandipur Cable Car and Tourism Limited has applied for 3.06 million units of shares.
Except Akama Hotel Limited, all the companies have to pay Rs. 10,000 per share. They have offered to issue shares at the rate of Rs 100.
At present, these companies are in curring losses and the net worth of the shares is also negative, due to the directives of the Public Accounts Committee, the application of these hotels has been stuck. The Securities Board has found it difficult to approve the issue of shares until the Public Accounts Committee clears the way.
