Kathmandu. SY Panel Nepal Limited (SY Panel) is going to issue an initial public offering (IPO) from September 23. The company is going to issue IPO for the local residents of the affected area and the Nepalese employed abroad.
Although the company was preparing to issue the IPO from September 12, it is going to issue from September 29 due to the difficult situation in the country.
The company was allowed to issue 40 percent of the issued capital of Rs 1,30,89,37,100 i.e. 52,32,54,800 units. Out of the offered shares, 2,61,629 units of ordinary shares worth Rs 2,61,62,700 will be issued to the locals of the affected area. Local residents of all wards of Ratnanagar Municipality of Chitwan can apply for the shares.
Likewise, the company is issuing 4,97,092 units of ordinary shares at a face value of Rs 100 per share i.e. 10 percent of the total amount of shares allotted to the general public for the Nepalese employed abroad after obtaining labour permit from the concerned body of the government. The company has allotted 1,49,127 units of shares for its employees and 2,48,546 units for mutual funds.
Applications can be place for minimum 10 units and maximum 50,000 units. The company has not set a date for the closure of the issue.
ICRA Nepal has assigned ICRA NP Issue Rating Double ‘B’ to the company. This indicates that there is a moderate risk to the company’s ability to meet its obligations.
Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance. The local people can apply by following the online link created by SY Panel Nepal, Ratnanagar, Chitwan, Prabhu Capital, Kamaladi and Capital. Moreover, the interested bidders can apply from Prabhu Bank’s Sauraha and Tandi branches. Residents of the affected areas will have to pay Rs 2 for the application form to receive the share purchase application.
Likewise, Nepalese who have been on foreign employment can apply from all ASBA member banks and financial institutions approved by the Securities Board of Nepal (SEBON) and their designated branch offices.
