1st September 2025, Kathmandu
The Nepal Stock Exchange (NEPSE) has significantly bolstered its market activity by officially listing the Further Public Offering (FPO) of Himalayan Bank Limited and the rights shares of Dordi Khola Hydropower Company Limited.
NEPSE Lists Himalayan Bank’s FPO
This dual listing is a powerful indicator of the growing dynamism in Nepal’s capital market, providing fresh opportunities for investors and strengthening the capital bases of two key players in the banking and hydropower sectors.
Himalayan Bank’s FPO: Strengthening a Financial Giant
Himalayan Bank, a prominent name in Nepal’s commercial banking sector, has now seen its recent FPO officially listed on NEPSE. This is a crucial step that adds a total of 9,250,469 units of FPO shares to the pool of tradable securities. An FPO, or Follow-on Public Offering, is a method by which a company that is already publicly traded issues new shares to the general public. This is distinct from an Initial Public Offering (IPO), as the company already has a public presence. The primary objective of an FPO is to raise additional capital, which can be used for various purposes, such as expanding operations, reducing existing debt, or strengthening the company’s equity base.
The listing of these shares is highly beneficial for the market as it increases the overall free float of Himalayan Bank’s securities. A higher free float means more shares are available for trading, which in turn enhances market liquidity. This makes it easier for investors to buy and sell the stock without causing a significant impact on the price, leading to more efficient and stable trading. Furthermore, this move broadens the opportunity for a wider range of investors, including both retail and institutional, to gain ownership in one of Nepal’s leading commercial banks. The funds raised from this offering will play a crucial role in bolstering the bank’s financial strength and supporting its long-term growth plans.
Dordi Khola Hydropower’s Rights Shares: Fueling the Energy Sector
In parallel, NEPSE has also listed the rights issue of Dordi Khola Hydropower Company Limited. This listing involves a total of 10.5 million rights shares, which were issued under a 100 percent rights offering. A rights offering is an issue of new shares to existing shareholders in proportion to their current holdings. In this case, for every share an investor already held, they were given the right to purchase one additional share.
With the inclusion of these new rights shares, the company’s total listed share capital has now reached 21,085,208 units. These shares have been formally admitted to trading on NEPSE and are now available for transactions in the secondary market. This development is particularly important for the company as the funds raised from the rights issue will enable Dordi Khola Hydropower to finance ongoing projects, fund future expansion plans, and maintain its operational momentum. For existing shareholders, this listing offers a valuable opportunity to increase their stake in the company at a discounted price, and for new investors, it provides a chance to enter the market and participate in the company’s growth.
Broader Implications for Investors and the Capital Market
The simultaneous listing of these two distinct offerings carries significant implications for both individual investors and the overall capital market.
- Enhanced Market Liquidity: The combined addition of nearly 20 million tradable shares from both Himalayan Bank’s FPO and Dordi Khola’s rights issue is expected to substantially improve the trading volume and depth on NEPSE. This increased liquidity is a positive signal, making the market more attractive to a wider range of investors.
- Diversification Opportunities: The listings offer investors access to two different sectors: a well-established commercial bank and a growing hydropower company. This diversification allows investors to manage their risk by allocating capital across different industries with varied risk profiles and growth potential.
- Capital Expansion for Issuers: The funds generated from these offerings are vital for the issuers’ strategic objectives. Himalayan Bank strengthens its financial position and capacity to expand its banking services, while Dordi Khola Hydropower secures the necessary capital to finance new and existing projects in Nepal’s thriving energy sector.
- Stronger Secondary Market Participation: The listing of rights shares makes them tradable, providing existing shareholders of Dordi Khola with the flexibility to either exercise their rights or sell them for a profit in the secondary market. This also creates a new entry point for other investors who may not have participated in the initial rights offering.
A Sign of Growing Capital Market Activity
The dual listing of a major commercial bank’s FPO and a hydropower company’s rights shares is a clear testament to the increasing vibrancy and diversification of Nepal’s capital market. In recent years, NEPSE has witnessed a surge in participation from companies across various sectors, including banking, insurance, hydropower, and manufacturing. This trend reflects a broadening of the country’s economy and its capital market, moving beyond a few dominant sectors. The success of these offerings and their subsequent listings indicate a healthy appetite from investors and a robust platform provided by NEPSE.
For Himalayan Bank, this FPO is a strategic move to fortify its capital base for long-term growth. For Dordi Khola Hydropower, the rights issue is an essential step to secure the funding needed to expand its projects and maintain operational momentum in a competitive and rapidly developing industry.
Conclusion
With the new listings of Himalayan Bank’s 9.25 million FPO shares and Dordi Khola Hydropower’s 10.5 million rights shares, NEPSE continues to solidify its position as a dynamic and robust platform for both issuers and investors. These developments not only enhance the liquidity and depth of Nepal’s secondary market but also provide fresh and valuable investment opportunities. For shareholders and potential investors, staying informed about such listings is paramount, as they directly influence investment strategies, portfolio diversification, and ultimately, long-term returns. The continued growth of such offerings underscores the strong potential of Nepal’s capital market.
For More: NEPSE Lists Himalayan Bank’s FPO