Norvic Hospital Announces 42.105% Dividend and 20% IPO Plan

22nd August 2025, Kathmandu

Norvic International Hospital and Medical College has announced a major strategic decision that will have a significant impact on its financial future and its relationship with the public.

Norvic’s Dividend and IPO Plan

The hospital’s Board of Directors, in a meeting held on August 20, 2025 (Bhadra 4, 2082), has declared a generous 42.105% dividend for its shareholders. Simultaneously, the board has proposed to issue 20% ordinary shares (IPO) to the general public. This dual announcement highlights not only the hospital’s robust financial health and profitable performance but also its ambitious plans for future expansion and its vision to allow the public to share in its success. The decision to combine a substantial dividend with a public offering demonstrates a balanced strategy of rewarding existing investors while simultaneously securing new capital for long-term growth.

Breakdown of the Dividend and AGM Details

The proposed 42.105% dividend for the fiscal year 2024/25 is broken down into two components. The primary portion consists of 40% bonus shares, which will directly increase the number of shares held by each investor. This is a highly attractive form of dividend as it effectively reinvests the company’s profits back into the shareholder’s portfolio. The remaining portion is a 2.105% cash dividend, which has been specifically allocated to cover the tax obligations on the bonus shares. The hospital has explicitly stated that the tax amount applicable to the bonus shares will be deducted from this cash dividend, ensuring a seamless process for shareholders. This strategic allocation of cash dividend for tax purposes is a common practice among companies and shows a clear consideration for the investors’ convenience.

To formally approve these major proposals, Norvic International Hospital has scheduled its Annual General Meeting (AGM) for September 14, 2025 (Bhadra 29, 2082). The meeting will be held at 12:30 PM at the hospital’s main location in Thapathali, Kathmandu. The AGM serves as a critical forum for shareholders to vote on the company’s direction and performance. The agenda for the meeting is extensive and includes several key points that require shareholder approval:

• The approval of the Board of Directors’ Annual Report for fiscal year 2024/25, which provides a detailed overview of the hospital’s performance and financial standing over the past year.
• The approval of the Auditor’s Report and the subsequent appointment of auditors for the upcoming fiscal year 2025/26.
• The fixation of the Auditor’s remuneration, ensuring fair compensation for the financial oversight provided.
• The election of Directors, a crucial step in corporate governance that ensures the leadership team is chosen by and accountable to the shareholders.
• The formal approval of the dividend distribution totaling 42.105%.
• The approval for the issuance of a 20% IPO to the general public.

Upcoming IPO Issuance and Strategic Growth

In addition to the generous dividend, the proposal to issue 20% of its paid-up capital as an Initial Public Offering (IPO) marks a major milestone for Norvic International Hospital. This is a significant move for one of Nepal’s leading private healthcare institutions, as it allows the public to become part owners of a well-established and trusted brand. The proceeds from the IPO will serve a dual purpose. First, it will substantially strengthen Norvic’s capital base, providing the financial foundation needed for robust future growth. Second, it will support the hospital’s long-term expansion plans and help finance the introduction of advanced medical technologies and infrastructure improvements. The IPO aligns with Norvic’s vision to become a more inclusive and financially powerful institution, allowing it to better serve its patients and shareholders. This move is also a testament to the hospital’s confidence in its business model and future profitability.

The IPO holds significant implications for the wider investment community in Nepal. The healthcare sector has been a focal point for investors, and Norvic’s decision to go public will provide a new and attractive avenue for investment. The IPO will offer a unique opportunity for new investors to gain exposure to a stable and growing sector through a brand that has a reputation for quality and trust. This bold step by Norvic could also set a precedent, encouraging other large private healthcare providers in Nepal to consider similar public listings. This would not only deepen the capital market but also provide more investment options for the public, contributing to a more dynamic and diversified investment landscape.

Significance for Stakeholders and Conclusion

The 42.105% dividend proposal is a testament to Norvic Hospital’s robust financial performance and its commitment to rewarding its existing shareholders. The blend of a high percentage of bonus shares and a cash dividend for tax purposes showcases a thoughtful strategy that benefits investors in multiple ways. The bonus shares directly increase the shareholder’s ownership stake, while the cash dividend provides immediate, tangible value. Meanwhile, the IPO allows the hospital to expand its ownership base, raising vital capital while also creating a new wave of public participation in the healthcare sector. The upcoming AGM on September 14, 2025 (Bhadra 29, 2082), will be a critical event where all these transformative agendas will be discussed and approved. This strategic move solidifies Norvic International Hospital’s role as a leader not just in healthcare, but also in the broader Nepali investment landscape. It demonstrates a forward-looking vision that is built on financial strength, a commitment to growth, and a desire to share its success with both its dedicated shareholders and the general public.

For More: Norvic’s Dividend and IPO Plan