Hotel Forest Inn to Open IPO for Nepalese Working Abroad from Magh 4

Hotel Forest Inn Limited is set to open its initial public offering (IPO) from Magh 4, targeting Nepalese employed abroad. The company has received approval to issue shares worth Rs 4 billion, representing 20% of its issued capital of Rs 20 billion.

Out of the approved amount, 10%—equivalent to Rs 400 million—will be offered in the first phase to Nepalis working overseas. This translates to 400,000 ordinary shares at a face value of Rs 100 per share, to be issued to individuals who have obtained labor approval from the relevant government authority.

Applicants will be required to apply for a minimum of 10 shares, while the maximum application limit has been set at 200,000 shares. The subscription period will close as early as Magh 8 and no later than Magh 18, depending on demand.

For the IPO, the company has received an issuer rating of IRN Double B Minus from Infomerics Credit Rating Nepal, indicating a moderate level of risk in the company’s ability to meet its financial obligations.

According to the company, the total cost incurred in completing the hotel project stands at Rs 3.48 billion. The project’s simple payback period is estimated at 10.86 years, while the discounted payback period extends to 15.33 years.

The issue and sales manager for the IPO is NIC Asia Capital Limited. Eligible investors can submit applications through ASBA-participating banks and financial institutions approved by the Securities Board of Nepal, or via the ‘Mero Share’ online system operated by CDS and Clearing Limited.