KATHMANDU, Nov 21: A total of 77 companies have submitted applications to the Securities Board of Nepal (SEBON) for Initial Public Offering (IPO) approvals. These companies are seeking to issue a combined 3.179 billion units of shares, valued at Rs 44.75 billion.
The majority of the applications come from the hydropower sector, with 37 companies seeking approval for their IPOs. Other sectors include manufacturing and processing (13 companies), hotel and tourism (five companies), micro-insurance (four companies), investment (two companies), and microfinance (one company).
24 companies preparing to issue IPOs worth Rs 6.5 billion
Despite the high number of applications, the approval process has been stalled since December 2023 due to the absence of executive leadership at SEBON. Although the Ministry of Finance appointed Joint Secretary Mahesh Baral as acting chairman, the IPO approvals have not moved forward under his leadership.
Additionally, the parliamentary committee has imposed restrictions on IPOs for companies with a net worth of less than 90 percent. This has particularly affected hydropower companies, many of which fall below this threshold. The issue has also been complicated by concerns over premium pricing, with the Office of the Auditor General raising questions about the justification for such pricing in IPOs.
As a result, the IPO market remains in limbo, with many companies awaiting regulatory approval to move forward with their offerings.
