Kathmandu. Hotel Forest Inn Limited is going to open the initial public offering (IPO) for the general public from February 22. The company is going to go to the general public in the second phase after the allotment of shares for Nepalis employed abroad, mutual investment fund and employees.

The company was allowed to issue an IPO of Rs 400 million i.e. 20 percent of the issued capital of Rs 2 billion. Out of the total offered shares, 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.

The remaining 33,30,000 units of ordinary shares worth Rs 33.30 crore will be issued to the general public at the rate of Rs 100 per share. Applications can be place for minimum 10 units and maximum 2,00,000 units.

The application for the IPO will be open till February 26. If the application is not submitted within that period, the deadline will be extended till February 22. The company has invested more than Rs 3.48 billion in the hotel project. The project has a non-investment return period of 10.86 years and discount return period of 15.33 years.

NIC ASIA Capital Limited has been appointed as the issue manager for the IPO issuance. The interested investors can apply for the shares through the online system of CDS & Clearing and the participating banks and financial institutions or CDS & Clearing.

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.