Upcoming FPO in Nepal
Three different microfinance companies are in the pipeline for FPO issuance and approval in the regulatory body Nepal Securities Board (Cebon). Kisan Microfinance, Naya Sarathi Microfinance and Mirmire Microfinance Financial Institutions have so far submitted applications to the board seeking permission to issue FPOs.
The Kisan MFI has applied to the Nepal Securities Board (NSB) on July 13 seeking permission to issue 1.289 million FPOs. The organization has sought permission to issue FPO worth Rs 162.282 million at the rate of Rs 125.
At present, the paid up capital of the organization is Rs. 392.8 million. After the issuance of shares to the public through FPO, the paid up capital of the organization will reach Rs. 522.6 million.
Rating agency Care Rating Nepal has given ‘Double B Minus’ rating to the FPO of the organization. This rating indicates that the company has an average moderate risk in fulfilling its financial obligations on time.
The institution has appointed Muktinath Capital as the manager of securities issuance and sale for the purpose of issuance of FPO.The organization has sought permission to issue an FPO of Rs 38.2 million at the rate of Rs 116.
The firm has appointed NMB Capital as the issue and sale manager for the purpose of FPO issuance.Similarly, Mirmire Microfinance Financial Institution Limited has submitted an application to the regulatory body Nepal Securities Board (Cebon) on November 8 to expel the FPO.
The organization has sought permission to issue 51,316 lots of FPO at the face value of Rs. The organization has appointed Nepal SBI Merchant Banking Limited as the FPO Issue and Sales Manager.
The FPO of the organization has been given ‘ICRA NP Issuer BB’ rating by the rating agency ICRA Nepal. This rating indicates that the company’s ability to bear financial obligations is moderate risk and the company’s underlying condition is moderate.
After acquiring Sweda Microfinance Financial Institution Limited, the company is going to issue FPO at a premium for the difference between the founder share and the general share capital.