Kathmandu: Palpa Cement Industries has opened its initial public offering (IPO) to the general public starting February 24 (Falgun 12), issuing 4.5 million shares to retail investors.
The company had received regulatory approval to issue 7.5 million shares worth Rs 750 million, representing 20 percent of its Rs 3.75 billion issued capital. Of the total offering, 1.875 million shares worth Rs 187.5 million were allocated to residents of project-affected areas. A further 562,500 shares were set aside for Nepali migrant workers abroad, 281,250 shares for mutual investment funds, and 281,250 shares for company employees. The remaining 4.5 million shares have now been made available to the general public.
The IPO, which opened on February 24, will close as early as February 28 if fully subscribed, or by March 10 at the latest. Investors may apply for a minimum of 10 shares and a maximum of 100,000 shares. Nabil Investment Banking Limited has been appointed as the issue and sales manager.
For the offering, credit rating agency Infomerics assigned the company a ‘Double B Plus’ rating, indicating moderate creditworthiness.
Palpa Cement Industries becomes the fifth cement company in Nepal to go public. Previously, Shivam Cement, Ghorahi Cement, and Sonapur Minerals and Oil Limited issued IPOs at a premium price, while Sarvottam Cement launched its shares through the book-building process. In contrast, Palpa Cement has issued its shares at face value.
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