Kathmandu: Shares offered in the initial public offering of Palpa Cement Industries Limited were officially allotted on Friday after receiving overwhelming demand from investors.
The allocation was carried out by Nabil Investment Banking, the issue manager appointed to handle the company’s IPO process. The allotment took place Friday morning.
Because applications far exceeded the number of shares available, the allocation was conducted through a lottery system. The company had offered 4.5 million ordinary shares to the general public at a face value of NPR 100 per share between February 24 and February 27.
In total, 2,413,517 applicants applied for 26,310,970 shares. Of these, 2,376,705 applications were deemed valid.
Due to the heavy oversubscription, only 450,000 applicants received shares through the lottery, with each successful investor allotted 10 shares.
Prior to opening the issue to the general public, the company had already allocated portions of the IPO to local residents affected by the industry and mining operations, as well as to Nepali citizens working abroad.
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