Unsold promoter, employee, and public right shares from 1:0.80 issue to be auctioned; Prabhu Capital appointed as issue manager

Kathmandu — City Hotel Limited (CITY) has announced that it will auction 21,50,418 units of unsold right shares — comprising promoter, employee, and ordinary lock-in shares — from its previous 1:0.80 rights offering. The auction will be open from 23rd Kartik to 30th Kartik, 2082, allowing interested individuals, companies, and institutions to participate.

Breakdown of Unclaimed Shares

According to the company, a total of 1,12,41,582 shares were allotted to valid applicants during the rights offering period. However, 19,50,418 shares, representing 14.78% of the total issue, remained unclaimed by eligible investors.

From the total right shares issued, 85.22% (1,12,41,582 units) were allotted to shareholders, while the remaining unclaimed shares are now being made available to the general public through auction.

The auction will include:

• 19,80,999 units of promoter right shares (under lock-in until Jestha 04, 2083)
• 6,000 units of employee right shares (also under lock-in until Jestha 04, 2083)
• 1,54,419 units of ordinary right shares held by public shareholder groups

Auction Details

The auction period will run for seven days, from 23rd Kartik to 30th Kartik, 2082.
All individuals, institutions, and companies are eligible to participate in the auction process.

• Minimum bid rate: Rs. 100 per share
• Minimum bid quantity: 100 units for ordinary right shares
• Maximum bid quantity: As per regulatory limits set by the Securities Board of Nepal (SEBON)

Participants are permitted to bid for the entire offering, but they must comply with SEBON’s guidelines restricting the maximum number of shares a single entity can acquire.

Issue Management and Rights Offering Background

Prabhu Capital Limited has been appointed as the issue manager for this auction process.

The company had previously issued 1:0.80 ratio right shares to its shareholders during the subscription period from 23rd Bhadra to 26th Ashwin, 2082. The unclaimed shares from that issuance are now being made available through this auction.

Key Takeaway

This auction offers a fresh opportunity for investors to acquire shares of City Hotel Limited at the base rate of Rs. 100 per share, potentially benefiting from the company’s long-term growth prospects in the hospitality sector.