Kathmandu- Despite the Nepal Securities Board (SEBON) continuing to grant approvals for initial public offerings (IPOs) in recent months, a large volume of public issues is still stuck in the pipeline. At present, 87 companies are awaiting approval from SEBON to issue IPOs, involving a total of 411.20 million shares.
According to SEBON data, more than half a trillion rupees worth of shares remain in the approval queue. In total, IPOs worth approximately Rs 59.10 billion are pending clearance from the regulator, reflecting significant pressure on the country’s primary market pipeline.
Hydropower companies account for the largest share of the pending IPOs. A total of 34 hydropower companies have applied to SEBON seeking permission to issue around 161.07 million shares. The combined value of these proposed issues from the hydropower sector alone stands at about Rs 16.42 billion, underscoring the sector’s continued dominance in Nepal’s capital market.
Following hydropower, the manufacturing and processing sector ranks second in terms of IPO volume in the pipeline. Twenty-five companies from this sector have submitted applications to issue around 154.17 million shares. These firms have sought approval to raise more than Rs 31.27 billion through public offerings, making manufacturing and processing the single largest sector in terms of proposed issue value.
The hotel and tourism sector also features prominently in the pending list. Ten companies from this sector have applied to SEBON for permission to issue approximately 3.93 million shares. IPOs worth about Rs 3.93 billion from hotel and tourism companies are currently awaiting regulatory approval.
Similarly, four companies from the investment sector are in line for IPO approval. These companies have applied to issue shares worth around Rs 314.10 million, further adding to the growing pipeline at SEBON.
In addition, eleven companies from other sectors have submitted applications to issue around 41.18 million shares. IPOs worth approximately Rs 457.09 million from these miscellaneous sectors are still under review by the board.
The micro-insurance sector has also entered the IPO queue, with three companies seeking approval to issue a total of 6.75 million shares. These proposed offerings represent IPOs worth about Rs 675 million.
The growing backlog highlights sustained interest among companies to enter Nepal’s capital market, particularly from infrastructure-related sectors such as hydropower. However, it also underscores the mounting pressure on SEBON to expedite approvals to prevent prolonged delays in mobilizing investment through public offerings.
