18th September 2025, Kathmandu
Norvic International Hospital Limited has taken a significant step toward expanding its operations and increasing its public ownership by appointing Laxmi Sunrise Capital Limited as the issue and sales manager for its upcoming Initial Public Offering (IPO).
Norvic to Issue IPO
The agreement was officially signed by Norvic’s Chief Executive Officer, Ajay Kumar Mishra, and his counterpart at Laxmi Sunrise Capital, Bijay Lal Shrestha. The hospital intends to offer 2.5 million ordinary shares to the public, with the primary objective of raising capital to support its ambitious expansion and further enhance its high-quality healthcare services.
Strategic Objectives of the IPO
The decision to go public is a strategic one for Norvic, a prominent healthcare institution that has grown substantially since its establishment in 1993. By issuing an IPO, the hospital is looking to diversify its sources of capital, moving away from an exclusive reliance on debt financing. This will provide the necessary funds to support its capacity expansion plans, specifically the upgrade from its current 200-bed capacity to a target of 300 beds. The capital raised will also be instrumental in acquiring more cutting-edge medical technology and improving its infrastructure, thereby allowing the hospital to continue providing services that are considered to be on par with international standards.
Beyond raising capital, the public listing of its shares on the Nepal Stock Exchange (NEPSE) will have several other benefits for Norvic. It will enhance the company’s transparency and corporate governance, as a publicly listed entity is subject to stringent regulatory oversight and reporting requirements. This increased transparency can, in turn, build greater public trust and attract new investment, both domestic and foreign. The IPO also provides an opportunity for the public to become part-owners of the hospital, fostering a sense of community ownership and aligning the hospital’s growth with the financial interests of a broader base of investors.
The Role of the Issue Manager
The appointment of Laxmi Sunrise Capital Limited is a crucial step in this process. As the issue manager, the company will be responsible for overseeing the entire IPO, from the initial regulatory filings to the final allotment of shares. This includes preparing the prospectus, which provides detailed information about the hospital’s operations, financial health, and future plans to potential investors. It also involves coordinating with the Securities Board of Nepal (SEBON), the regulatory body that oversees the securities market in Nepal, to ensure that the IPO meets all legal and regulatory requirements.
Laxmi Sunrise Capital has a strong track record as an issue manager and underwriter, having successfully handled numerous public offerings in the past. This experience is vital for ensuring that Norvic’s IPO is conducted efficiently and effectively, minimizing potential risks and maximizing investor participation. The partnership between a leading healthcare provider and a seasoned financial institution is a strong signal of confidence to the market.
Wider Implications for Nepal’s Capital Market
The Norvic International Hospital IPO is a significant development for Nepal’s capital market, as it marks a potential new trend. According to information from a recent AGM, Norvic has transformed into a public limited company, aiming to become the first major hospital and medical college to be listed on the Nepal Stock Exchange. While other health sector companies, such as the Hospital for Advanced Medicine and Surgery (HAMS Hospital), have also filed for IPOs, Norvic’s offering is a landmark event. A successful IPO would open up the healthcare sector to public investment, potentially paving the way for other private hospitals and medical institutions to follow suit. This could lead to a diversification of investment opportunities for the public, which have traditionally been concentrated in the banking, hydropower, and insurance sectors.
The listing of a healthcare company like Norvic could also encourage greater private sector investment in the healthcare industry, a sector that is critical for national development. By offering a path to public capital, the IPO could enable more hospitals to scale up their operations, improve their infrastructure, and provide better services to the public. This would not only benefit investors but also contribute to the overall improvement of Nepal’s healthcare system, making quality medical services more accessible to a wider population. In a country where medical tourism to neighboring nations like India is still common for complex procedures, strengthening domestic healthcare providers through public investment is a crucial step toward achieving self-sufficiency and ensuring the well-being of the nation’s citizens.
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