KATHMANDU: The Securities Board of Nepal (SEBON) has added the initial public offering (IPO) proposals of two investment companies—Nexgen Management and Equity Solutions Limited and Baidik Investment Company Limited—to its pipeline.
Nexgen Management and Equity Solutions Limited has proposed issuing 1.25 million ordinary shares at a face value of Rs 100 each. The proposed IPO would raise Rs 125 million for the company. Laxmi Sunrise Capital Limited has been appointed as the issue manager for the offering.
The company will be able to issue the shares to eligible local and general investors only after receiving approval from SEBON.
Similarly, CARE Ratings Nepal Limited has assigned Nexgen Management and Equity Solutions a ‘CARE-NP BB’ issuer rating, indicating a moderate level of risk regarding the company’s ability to meet its financial obligations on time.
Established in 2018 by professionals from the industrial, business, banking and insurance sectors, Nexgen Management and Equity Solutions was initially set up to operate as an asset reconstruction company, with the aim of addressing the growing volume of non-performing loans in Nepal’s banking sector.
However, the company has yet to fully commence asset reconstruction activities due to the absence of a specific legal framework and regulatory uncertainties. At present, it focuses on investment and corporate advisory services and plans to establish a subsidiary in the future to undertake asset reconstruction activities.
Additionally, the IPO proposal of Baidik Investment Company Limited has also been added to SEBON’s pipeline. The company has proposed issuing 2.835 million shares at a face value of Rs 100 per share. The IPO is expected to raise Rs 283.5 million.
Muktinath Capital Limited has been appointed as the issue manager for the offering. Baidik Investment Company will be able to float the proposed shares to eligible local and general investors only after obtaining approval from SEBON.
CARE Ratings Nepal has assigned the company a ‘CARE-NP BB’ issuer rating, reflecting a moderate risk of default in the timely servicing of its financial obligations.
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