Kathmandu. Hotel Forest Inn is issuing initial public offering (IPO) to the general public from today.

The company has already allotted its shares to Nepalis working abroad, mutual investment funds and employees.

The company has been allowed to issue an IPO of Rs 400 million 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 while 2 Lakh units have been set aside for the mutual funds and 80,000 units have been set aside for the employees.

The company is issuing 33,20,000 units of ordinary shares worth Rs 33.30 crore to the general public. Applications can be place for minimum 10 units and maximum 2,000,000 units.

The last date to apply for the IPO is February 10. NIC Asia Capital has been appointed as the issue manager for the auction. The interested investors can apply for the shares through the online system of CDS & Clearing or any of the banks and financial institutions participating in the ASBA service approved by the Securities Board of Nepal (SEBON).

Infomerix Credit Ratings Nepal has assigned “IRN Double B minus” to the IPO as an “IRN Double B minus”, indicating that the company’s ability to absorb its liabilities is moderately risky. The company has invested more than Rs 3.48 billion in hotel projects. The project has a non-investment return period of 10.86 years and discount return period of 15.33 years.