Simrik Air Limited, a private sector airline company, is preparing to issue its Initial Public Offering (IPO) at a premium price. For this purpose, the company has scheduled its Annual General Meeting (AGM) for Asar 25. The IPO process will formally move forward only after approval from the AGM.
Alongside the IPO proposal, the company is also set to propose the distribution of bonus shares to increase its paid-up capital. This decision was made during a board meeting held on Tuesday, where it was resolved to place both proposals — issuing IPO at a premium and bonus share distribution — before the AGM.
In recent times, airline companies in Nepal have shown growing interest in entering the capital market through IPOs. However, the method of issuing shares at a premium price using the book building approach has become controversial. As a result, the Nepal Securities Board (SEBON) has currently halted the approval process for such offerings.
In this context, the Finance Committee of the Federal Parliament last Friday directed SEBON to ensure that any company intending to issue an IPO at a premium must have a minimum net worth of Rs. 90 and must publicly disclose related financial details.
This article was originally published on bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
