City Hotel Limited has successfully concluded the initial public offering (IPO) allotment process at Hyatt Place in Soalteemode, Kathmandu. The company had offered 13,55,940 units of shares with a total value of Rs. 13.55 crores to the general public from Baisakh 25 to 28, 2080.
Out of the total 16,74,000 units, 10% (1,67,400 units) were allotted to Nepalese citizens working abroad, while 4% (66,960 units) were set aside for the company’s employees. Additionally, 5% of the offered shares (83,700 units) were reserved for mutual funds. The remaining 13,55,940 units were made available for the general public.
Following the IPO allotment, the company’s total paid-up capital would amount to Rs. 1.67 Arba.
Global IME Capital Limited was appointed as the issue manager for the IPO issuance. The company received applications from 10,87,675 valid applicants, with a total demand for 1,18,33,710 units. The IPO was oversubscribed by more than 8.72 times.
Based on the allotment module, a total of 1,35,594 applicants were allotted 10 units each through a lottery system, while the remaining 9,52,081 applicants were not allocated any units.
Furthermore, 83,700 units were allotted to mutual funds, and 66,960 units were allocated to the employees of the company. However, 4,992 applicants who had applied for 61,660 units were disqualified and did not receive any shares.