November 20: Nepal Infrastructure Bank Limited (NIFRA) is all set to float the largest initial public offering (IPO) in the Nepali stock market. The bank is preparing to float 80 million units of shares worth Rs 8 billion from 40 percent of its issued capital.
This is the largest share ever to be issued in the Nepali stock market.
The largest IPO issued in Nepal so far was that of the Upper Tamakoshi Hydropower Project. The project had issued 20 million units of IPO.
The total issued capital of NIFRA is Rs 20 billion. The paid-up capital of NIFRA currently stands at Rs 12 billion. After issuing the shares, the paid-up capital will increase to Rs 20 billion.
The bank is planning to present a proposal to issue the shares during its first general assembly on December 15.
The bank’s Deputy CEO Bhupendra Pandey said that the process of issuing the IPO will move further ahead after getting approval from the general assembly.
The bank has to seek permission from the Securities Board of Nepal to issue the shares after getting approval from the general assembly.
Other formalities that the bank needs to undergo include rating the bank from a rating agency, appointing share issue manager among others.
The bank has set a target of issuing the IPO within the current fiscal year.
“We will initiate the process of issuing the IPO as soon as we get approval from the general assembly,” said Dy CEO Pandey, adding, “We will be able to issue the shares within seven or eight months.”