28th September 2025, Kathmandu
Yeti Airlines is poised for a significant corporate and financial restructuring as it prepares for its Third Annual General Meeting (AGM), which will focus on paving the way for a public listing through a premium Initial Public Offering (IPO).
Yeti Airlines Calls AGM
This strategic move is designed to inject fresh capital, stabilize the company’s financial position, and offer the general public a chance to invest in a major player in Nepal’s domestic aviation sector.
Details of the Annual General Meeting
The AGM is a crucial corporate event, where the management will seek shareholder approval for the company’s future direction and capital structure.
- Date and Time: Ashoj 31, 2082 (October 17, 2025), at 3:00 PM.
- Location: The company’s registered office in Tilganga, Kathmandu.
- Significance: The meeting will be critical for ratifying the necessary changes to enable the forthcoming IPO, reflecting the company’s commitment to enhanced financial transparency and growth.
Core Agenda: The Premium IPO
The central proposal of the AGM is the issuance of a premium IPO to the general public. A premium IPO allows the company to sell shares at a price above the par value, capturing a higher valuation that reflects its perceived business strength and future growth potential.
The primary goals associated with this IPO are:
- Capital Mobilization: The proceeds from the share issue will be instrumental in raising substantial fresh capital, which is earmarked for strategic initiatives such as fleet expansion, technological upgrades, and overall operational enhancements.
- Increased Paid-up Capital: Successfully executing the IPO will boost the company’s paid-up capital, a fundamental measure of financial strength that can enhance credibility with financial institutions and regulatory bodies.
- Expanded Ownership and Market Presence: Offering shares to the public will diversify the investor base, increasing market visibility and public engagement in the airline’s growth narrative. The premium pricing signals management’s confidence and ambition within the competitive Nepalese aviation market.
Structural and Regulatory Proposals
To facilitate the premium IPO and ensuing growth, the AGM will also address fundamental changes to the company’s legal and financial structure:
- Increase in Authorized and Issued Capital: Shareholders will vote on increasing the limits of the authorized and issued capital. This provides the company with the necessary headroom to issue new shares to the public and to accommodate potential future capital requirements, aligning the capital structure with aggressive growth plans.
- Amendments to Memorandum and Articles of Association: The AGM will grant the Board of Directors the authority to implement necessary amendments to the company’s foundational legal documents. This is a crucial procedural step to align the Memorandum and Articles of Association with the new capital structure, the premium IPO issuance, and evolving regulatory mandates.
- Approval of Financial Statements: Shareholders will review and formally approve the financial statements from the previous fiscal year, a key exercise in corporate governance that ensures financial transparency and accountability to all stakeholders.
- Appointment of Auditors: The meeting includes the appointment of auditors for the current fiscal year and the determination of their remuneration. This ensures independent scrutiny of the company’s financial records, upholding regulatory compliance and investor confidence in the accuracy of financial reporting.
- Review of Work Plan: Beyond financial matters, the management will present its operational and strategic work plan for the upcoming fiscal year. This includes proposals for improving operational efficiency, expanding the fleet, and developing new flight routes—all critical components for future profitability and sustained market competitiveness.
Strategic Rationale for the Public Listing
The decision to pursue a premium IPO through this AGM marks a new chapter for Yeti Airlines, focusing on securing long-term financial stability and expansion:
- Funded Expansion: The capital infusion from the IPO will be directly used to upgrade the airline’s fleet and develop its route network, particularly within Nepal’s challenging but high-demand domestic and remote sectors. The airline has recently shown strong performance metrics, including an improved credit rating and an increased passenger load factor, positioning it well for a public offering.
- Enhanced Corporate Governance: Transitioning from a private to a publicly listed company, complete with increased capital and amendments to its charter, reinforces the airline’s commitment to greater corporate governance, transparency, and accountability to a broader investor base.
- Investor Participation in a Growth Sector: The IPO provides the public with a direct investment avenue into Nepal’s growing air travel industry. Amidst the sector’s recovery and the strategic investment in the airline by entities like Asian Life Insurance, which acquired a 49% stake in 2023, the IPO is timely for leveraging a market that is showing renewed vigor.
The successful execution of the AGM’s agenda, particularly the premium IPO, will be a defining moment for Yeti Airlines, setting the stage for significant capital growth and establishing the airline as a more transparent, publicly owned entity dedicated to improving its services and strengthening its position in the competitive Nepali sky. Shareholders and prospective investors will be keenly observing the AGM results to gauge the pace and ambition of the airline’s future trajectory.
For More: Yeti Airlines Calls AGM