Trade Tower IPO opens to public; shares available until June 2

KATHMANDU, MAY 28: The Initial Public Offering (IPO) of Trade Tower Limited has opened to the general public starting today, Wednesday. Interested investors can apply online via the MeroShare platform or through their respective bank branches after office hours.

Earlier, the company had already issued IPO shares to individuals working abroad. In total, Trade Tower is offering 3,971,693 shares to the public. Of this, 10 percent has been allocated for Nepalis working overseas, 5 percent for mutual funds, and 2 percent for employees. The remaining 3,296,505 shares are now open to the general public.

According to the issue manager, Laxmi Sunrise Capital, applications can be submitted until June 2. Investors can apply for a minimum of 10 shares and a maximum of 1,000 shares. The IPO is being issued at a face value of NPR 100 per share. The company has received a BB rating from ICRA Nepal, indicating a moderate capacity to meet its financial obligations.

Company Overview

Trade Tower Limited is involved in the housing and hospitality sectors. Initially established as Kanchanjunga Housing Limited, it now operates under the name Trade Tower Limited.

The company operates the Trade Tower commercial complex in Thapathali, Kathmandu. The building was constructed on land leased from the Nepal Food Corporation for 30 years. Rental income from this building is one of the company’s main revenue streams. The complex has been in operation for 15 years.

In addition, the company has completed and sold the Janata Awas Housing Project in Bhaisepati. It also operates the Crystal Hotel in Gaushala, which features 90 luxury rooms and is a major source of income. The company’s current core operations include the Trade Tower complex in Thapathali and the Crystal Hotel in Gaushala.

Of the funds raised through the IPO, NPR 300 million will be used to repay bank loans and interest, while NPR 90 million will be invested in expanding the capacity of the Crystal Hotel.

As of mid-January this fiscal, the company reported earnings per share of NPR 1.88 and a net worth per share of NPR 113. It also recorded the accumulated profits of NPR 48.2 million.