Kathmandu, May 19: The IPO allotment of City Hotel Limited has been concluded. The Hotel had issued 13,55,940 units worth Rs 13.55 crores as Initial Public Offering (IPO) to the general public.
The company had issued 13,55,940 unit shares to the general public of Rs 100 face value. Out of the total 16,74,000 units; 10% i.e. 1,67,400 units have already been allotted to the Nepalese citizens working abroad, whereas 4% i.e 66,960 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 83,700 units have been set aside for the mutual funds. The remaining 13,55,940 units are for the general public.
The total paid-up capital after the IPO allotment would be Rs 1.67 Arba of the company. Global IME Capital Limited is appointed as the issue manager for the IPO issuance. The issue had received applications from 10,87,675 valid applicants who had applied for a total of 1,18,33,710 units. The issue was oversubscribed by more than 8.72 times.
As per the allotment module, a total of 1,35,594 applicants were allotted 10 units each via lottery and the remaining 9,52,081 applicants were returned with empty hands. A total of 83,700 units were allotted to the mutual funds and 66,960 units were allotted to the employees of the company.
In total 4,992 applicants who applied for 61,660 units were disqualified. CARE Ratings Nepal Limited (CRNL) has reaffirmed the issuer rating of ‘CARE-NP BB+ (Is)’ assigned to City Hotel Limited. Issuers with this rating are considered to offer a moderate risk of default regarding the timely servicing of financial obligations, in Nepal.
City Hotel Limited, incorporated on December 05, 2007, is the developer and operator of a new five-star hotel under the brand name “Hyatt Place” in Soaltee mode, Kathmandu. The Hyatt Place is a mixture of modern and cultural architecture serving its guests in various countries. The Hyatt Place, Kathmandu is operating at 10 Ropani land located at Red Cross Road, Soalteemode, Tahachal, Kathmandu, Nepal. The hotel has 153 rooms which belong to the Golyan Group of companies. The company is being promoted by 7 shareholders who have infused total paid-up equity of Rs. 1.50 arba as of now.
The IPO result can be accessed by CDSC IPO Result, MeroShare, and Global IME Capital.
