Kathmandu, Sept 19: The IPO allotment of Hathway Investment Nepal Limited has been concluded today at the premises of Global IME Capital Limited, Kathmandu. Hathway issued 24,27,750 unit IPO shares of Rs 50 face value to the general public.
The issued capital of the investment company is Rs. 1.17 billion of which 12.50% i.e. 29,25,000 unit shares is for the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 292,500 unit shares were allocated for Nepalese citizens working abroad, whereas 2% i.e. 58,500 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 146,250 units have been set aside for the mutual funds. The remaining 24,27,750 units are for the general public.
The issue will raise Rs. 14.625 crores for the company since each share is being issued at a face value of Rs. 50 per share. The current paid-up capital of the company is Rs. 1.023 billion which will reach Rs 1.17 billion after IPO allotment.
The issue had received applications from 12,67,709 valid applicants who had applied for a total of 29,651,520 units. The issue was oversubscribed by more than 12.21 times.
As per the allotment module, a total of 1,21,387 applicants were allotted 20 units each via lottery, whereas, 1 lucky applicant was allotted 10 units extra and the remaining 11,46,322 applicants were returned with empty hands.
A total of 146,250 units were allotted to the mutual funds and 58,500 units were allotted to the employees of the company.
In total 3,289 applicants who applied for 1,08,300 units were disqualified.
ICRA Nepal has assigned a long-term rating of [ICRANP] LBBB- (pronounced ICRA NP L triple B minus) to the long-term bank limits and reaffirmed the short-term rating of [ICRANP] A3 to the short-term bank limits of Hathway Investment Nepal Limited. ICRA Nepal has also reaffirmed the issuer rating of the company at [ICRANP-IR] BBB- (pronounced ICRA NP issuer rating triple B minus).
Hathway Investment Nepal Ltd. (HINL) is Nepal’s first private-equity investment company that has impacted investment objectives. HINL invests in all sectors which has potential and has a positive impact with solutions to existing problems employment creation or contribution to the local economy. The company’s investment combines risk capital financing with advisory support to help the investee develop systems, processes, standards, relationships, networks, and governance frameworks, if necessary. Founded in 2009, Hathway is a provider of private equity to the capital market, tourism, infrastructure, financial sectors, and SMEs. HINL’s renewed focus on equity investment is to support SMEs throughout Nepal with a catalyst to change management.
