City Hotel Opens 80% Rights Offering from Today; Issue Managed by Prabhu Capital

City Hotel Limited (CITY) has opened its 80% rights share issuance from today, Bhadra 23, 2082, allowing existing shareholders to apply until Ashwin 12, 2082.

The company is issuing rights shares in the ratio of 10:8, equivalent to 13.39 million units at a par value of NPR 100 each, amounting to NPR 1.34 billion.

For this rights issuance, the company had set its book closure date on Shrawan 27. Shareholders who were listed in NEPSE by Shrawan 26 are eligible to apply.

Care Ratings Nepal has assigned the company a rating of CARENP BB- (Issuer Rating), indicating a moderate risk of default in meeting financial obligations on time.

The issue is being managed by Prabhu Capital Limited. Applications can be submitted through Prabhu Capital, selected branches of Prabhu Bank (Ilam, Jawalakhel, Birgunj, Pokhara, Butwal, Surkhet, Dhangadhi), and all banks and financial institutions providing C-ASBA services. Investors can also apply online via Meroshare.

Currently, City Hotel’s paid-up capital stands at NPR 1.67 billion, which will increase to NPR 3.01 billion after the rights issue is completed. The funds raised will be primarily used for debt repayment, strengthening the company’s balance sheet.