Slowdown in IPO Approvals at SEBON, Both Companies and Investors Frustrated

Currently, 88 companies have submitted Initial Public Offering (IPO) proposals worth over Rs 56 billion to the Securities Board of Nepal (SEBON) and are awaiting approval. Among them, 44 companies are from the hydropower sector, indicating its dominance in the upcoming IPO market. The rest belong to manufacturing, services, hotels, insurance, microfinance, and investment sectors.

Around 403.97 million shares are proposed for issuance. Applicants will need to arrange at least Rs 107,000 to apply, with higher amounts needed for companies issuing shares at premium prices.

SEBON has stated that it will approve the proposals only after evaluating the financial condition of the companies. However, delays in leadership and management processes have kept many proposals pending, causing frustration among investors and companies alike. SEBON has indicated that it is working on policy reforms to speed up the approval process.