Kathmandu. Hotel Forest Inn Limited is going to open its initial public offering (IPO) for the general public from February 22. The company is going to issue shares to the general public in the second phase after the IPO allotment was completed for the Nepalese employed abroad.

The Securities Board of Nepal (SEBON) has approved the issuance of 4 million units of ordinary shares i.e. 20 percent of the issued capital of Rs 2 billion. 4 Lakh units have been set aside for the employees of the company, 2 Lakh units have been set aside for the mutual funds and 80,000 units have been set aside for the employees of the company. The company is issuing 33,20,000 units of ordinary shares at a face value of Rs 100 each to the general public.

Applications can be place for minimum 10 units and maximum 2,000,000 units. According to the company, the issue will close on February 26 at the earliest and on February 22 at the latter. Infomerics Credit Ratings Nepal has assigned IRN Double B Minus Issue rating to Hotel Forest Inn Limited for the IPO issuance. The rating indicates a moderate risk to the company’s ability to meet its obligations.

The total cost of the project is Rs 3.48 billion. The repayment period of the project’s general investment is 10.86 years and the discount period is 15.33 years. NIC ASIA Capital Limited has been appointed as the issue manager for the IPO issuance. The interested bidders can apply for the shares from ASBA licensed banks and financial institutions using ‘C-ASBA’ system or ‘Mero Share’ online system operated by CDS & Clearing Limited.