NewBiz Report

KATHMANDU, July 26

With the formation of a new government, Nepal's secondary market of securities is witnessing a notable upswing. Investors’ enthusiasm for newly issued shares in the primary market has surged, as demonstrated by Suryodaya Womi Laghubitta Bittiya Sanstha Limited's (SWMF) recent Further Public Offering (FPO). This marks a significant rebound following the Securities Board of Nepal's resumption of public issuance approvals after a lengthy pause.

According to the CDS and Clearing Limited, the state-owned central depository and clearing organization,  Suryodaya Womi’s FPO has attracted an impressive 1.659 million applications. This is a notable increase compared to earlier this year, when over 960,000 applications were submitted for the initial public offering (IPO) of Sarbottam Cement Limited (SARBTM).

Last year, the board approved FPOs for three companies and IPOs for six companies. Comparing the application data, it is clear that investors are particularly attracted to Suryodaya Womi Laghubitta's FPO. The CDSC reports that over 1.659 million investors have applied for shares of Suryodaya Womi Laghubitta, seeking more than 23.86 million shares.

As of Wednesday, Suryodaya Womi's share price per unit on the Nepal Stock Exchange stood at Rs 1,062.10. Share registrar Kumari Capital Limited said that investors are more excited because the company issued additional shares at Rs 100 per share. Pushpa Sharma, Chief Executive Officer of Kumari Capital, stated that when the shares sold by the company through FPO are listed on the secondary market, they are bought and sold at a fixed price, which has increased investor attraction.

Suryodaya Womi has successfully sold 46,729 shares through the FPO. The public issue approval process, which had been stalled since January 4, resumed in mid-May, leading to a surge in investor interest. The FPO’s pricing, aligned with the IPO price, and the initial trading price set according to market conditions, have contributed to the increased attraction of Suryodaya Womi’s shares.