Hotel Forest Inn’s IPO Opens for Foreign Workers

18th January 2026, Kathmandu

Hotel Forest Inn Limited has officially opened its Initial Public Offering (IPO) from Magh 4, 2082 (January 18, 2026), targeting Nepali citizens currently engaged in foreign employment. The IPO has been issued in the first phase exclusively for migrant workers who have obtained labor approval from relevant government authorities. This issuance marks an important step in expanding public participation in Nepal’s hospitality sector and mobilizing remittance income into productive domestic assets.

Hotel Forest Inn’s IPO

The company received approval from the Securities Board of Nepal (SEBON) on Poush 20, 2082, to issue a total of 4 million ordinary shares at a face value of Rs 100 per share. Out of this total issuance, which represents 20 percent of the company’s issued capital of Rs 2 billion, 400,000 shares (10 percent of the public quota) have been reserved specifically for Nepalis working abroad under this initial phase.

IPO Size, Pricing, and Allocation

Under the approved structure, the Hotel Forest Inn IPO allows eligible applicants to subscribe for a minimum of 10 shares and a maximum of 200,000 shares. This means investors can participate with an investment as low as Rs 1,000, while larger investors can apply for up to Rs 20 million, depending on their financial capacity.

The subscription period for this phase is scheduled to close as early as Magh 8, 2082. However, if the issue is not fully subscribed by that date, the offering period may be extended until Magh 18, 2082. This phased issuance approach aligns with the “Dhitopatra Niskasan Tatha Baadfaad Directives,” which prioritize foreign employed Nepalis in primary market offerings to ensure broader financial inclusion and encourage long term investment in the country.

Credit Rating and Financial Risk Assessment

For the purpose of the IPO, Hotel Forest Inn Limited obtained a credit rating from Infomerics Credit Rating Nepal Limited. The company has been assigned an IRN BB Minus (Issuer) rating. This rating indicates a moderate level of risk regarding the company’s ability to meet its financial obligations on time.

According to the rating rationale, the hotel is a 5 star property located in Budhanilkantha, Kathmandu, spanning 1.24 hectares with approximately 104 rooms. While the rating is constrained by the company’s nascent stage of operations and the inherent seasonal risks of the hospitality industry, it is supported by a license agreement with the InterContinental Hotels Group (IHG) to operate under the “Holiday Inn” brand. This international affiliation is expected to enhance operational standards and global marketing reach.

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Second Phase for the General Public

Following the completion of the share allotment for migrant workers, Hotel Forest Inn Limited will proceed with the second phase of the IPO, which will be opened to the general public. The remaining 3.6 million shares will be available during this period. The specific dates for the public issuance will be announced following the conclusion of the first phase.

The issuance and sales management responsibilities have been assigned to NIC Asia Capital Limited. As the issue manager, NIC Asia Capital will oversee the application processing through the ASBA (Application Supported by Blocked Amount) system and manage the allotment procedures in accordance with SEBON regulations.

Significance for Investors and the Hospitality Sector

The Hotel Forest Inn IPO provides a unique opportunity for Nepalis working abroad to become stakeholders in Nepal’s growing tourism infrastructure. The hotel’s strategic location near the Shivapuri Nagarjun National Park and the Budhanilkantha Temple positions it to attract both religious tourists and corporate clients seeking retreats.

For investors, the IPO offers a transparent entry into a sector that is a major contributor to Nepal’s foreign exchange earnings. As the tourism industry continues to recover and expand, listed hotel stocks on the Nepal Stock Exchange (NEPSE) have become increasingly attractive for portfolio diversification.

Conclusion

The opening of the Hotel Forest Inn IPO represents a notable development in Nepal’s primary capital market for early 2026. With a clear allocation framework, an international brand partnership, and a phased issuance strategy, the offering is positioned to attract significant interest from the diaspora community. As the first phase progresses, market participants will closely monitor the subscription levels, which will likely dictate the sentiment for the upcoming general public phase.

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