KATHMANDU: Trade Tower Limited has opened its Initial Public Offering (IPO) for ordinary shares to the general public starting today (May 28).
The company, which has properties in Thapathali and Gaushala, has received approval from the Securities Board of Nepal to issue 3,971,693 shares at a face value of Rs 100 each, amounting to Rs 397 million, representing 48.696 percent of its paid-up capital.
The funds raised through this IPO will be used primarily to repay bank loans and interest and to carry out repairs on the building’s roof.
Out of the total proceeds, Rs 300 million will be used to repay loans and interest owed to Laxmi Sunrise Bank. Additionally, Rs 90 million is allocated for expanding the capacity of Hotel Crystal Pashupati, adding more hotel rooms, and enhancing facilities at the Sona Spa.
Around Rs 7.97 million will be spent on repairing the dome and roof of the Trade Tower building in Thapathali.
Trade Tower currently has a paid-up capital of Rs 815.69 million and has reported profits for three consecutive years. In fiscal year 2021/22, the company earned a profit of Rs 13.86 million, which rose to Rs 27.05 million in 2022/23.
The profit further increased to Rs 48.2 million in 2023/24, and by mid-January 2024/25, it had already reached Rs 56.04 million. The company forecasts net profits of Rs 66.16 million for 2024/25, Rs 101.58 million for 2025/26, and Rs 125.55 million for 2026/27.
Regarding financial indicators, Trade Tower’s net worth per share was Rs 103.97 in 2021/22, increased to Rs 107.12 in 2022/23, peaked at Rs 123.05 in 2023/24, and slightly decreased to Rs 113.35 by mid-January 2024/25. The company projects net worth per share to be Rs 108.11 for 2024/25, Rs 112.45 for 2025/26, and Rs 115.35 for 2026/27.
Earnings per share were Rs 2.06 in 2021/22, Rs 3.59 in 2022/23, and Rs 5.63 in 2023/24. As of mid-January 2024/25, earnings per share stood at Rs 1.88, with projections of Rs 2.02 for 2024/25, Rs 4.33 for 2025/26, and Rs 5.95 for 2026/27.
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