Kathmandu: Sopan Pharmaceuticals is set to launch its initial public offering (IPO) for the general public starting March 22. The company plans to issue shares equivalent to 25 percent of its issued capital.
In the first phase, the company will open the IPO to Nepali citizens working abroad beginning March 22. Out of the total 4.29 million shares approved for issuance, 10 percent or 429,000 shares have been reserved for Nepalis employed overseas.
Additionally, 5 percent of the shares have been set aside for mutual funds, while 4 percent have been reserved for the company’s employees. The remaining 3,474,900 shares will be issued to the general public in the second phase.
Nepali investors working abroad will be allowed to apply for a minimum of 10 shares and a maximum of 11,000 shares. The application window will close on March 25. If the issue is not fully subscribed by then, the deadline may be extended until April 5, according to the issue manager NMB Capital.
For the IPO, has assigned the company a CARE-NP B rating, indicating a high level of risk in its ability to meet financial obligations.
According to the company’s financial projections, the simple payback period for the investment is estimated at 8.11 years, while the discounted payback period stands at 11.35 years. The project’s net present value (NPV) is estimated at Rs 15.97 billion, and the internal rate of return (IRR) is projected at 23.63 percent.
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