SY Panel Nepal Limited is opening its Initial Public Offering (IPO) for general investors from Wednesday (Kartik 19). Earlier, the company had already issued shares to people living in the industry-affected area and Nepalis working abroad. Shares for workers abroad were issued from Asoj 7 to 10, and distribution took place on Asoj 23. Shares for local residents were issued from Asoj 7 to 21, and distribution happened on Kartik 2.
https://nepsestock.com/ipo/sy-panel-nepal-ipo-for-general-public-open-date-issue-units-price-rating-and-result-date
Nepal Securities Board has allowed the company to issue 52,32,548 shares, which is 40% of the company’s paid-up capital of Rs. 1.30 billion. The IPO is being issued at the face value of Rs. 100 per share.
From the first phase:
2,61,629 shares were for affected local residents
4,97,092 shares were for Nepalis working abroad
In addition:
1,49,127 shares are reserved for employees
2,48,546 shares are reserved for mutual funds
Now, the remaining 40,76,156 shares will be offered to the general public.
General investors can apply for a minimum of 10 shares and a maximum of 50,000 shares. The issue will close on Kartik 23, but if not fully subscribed, it may extend until Mangsir 3. However, the company expects very high demand, just like in the first phase, so it will likely close early.
Prabhu Capital is the issue manager. Applications can be submitted through banks and financial institutions participating in ASBA, and online via MeroShare.
ICRA Nepal has given the company a rating of ICRA NP Double B+, meaning the company has a moderate credit risk.
About the Company
SY Panel Nepal started after the 2015 earthquake. The company was officially registered on Ashar 20, 2074. It now has more than 50 dealers across Nepal and provides building panels for institutions and individuals.
The company mainly produces:
EPS Sandwich Panels
PUF Panels
uPVC windows and doors
EPS panels come in two types — fire-resistant and non-fire-resistant.
The company converted to a public limited company in Ashar 8, 2079. Currently, founders hold 60% shares, and after IPO, the public will hold 40%.
Capital Structure
Authorized Capital: Rs. 1.30 billion
Issued Capital: Rs. 1.30 billion
Paid-up capital now: Rs. 78.48 crore
Paid-up capital after IPO: Rs. 1.30 billion
The company is issuing shares to expand operations and bring public participation.
Financial Performance
The company was in loss until FY 2078/79, with about Rs. 2.24 crore loss.
It turned profitable in 2079/80, earning more than Rs. 1 crore.
In 2080/81, it earned over Rs. 5.18 crore profit.
As of 2081/82 un-audited report, the company has a profit of more than Rs. 12.10 crore.
Projected profit for the current year is over Rs. 22.83 crore.
Key figures:
Earnings Per Share (EPS): Rs. 5.35 (actual), targeted Rs. 9.21
Net worth per share: Rs. 106.61, projected Rs. 117.46
Board of Directors
The board has 5 members:
Chairman: Hong Yong Don (South Korea) — holds 1,666,463 shares and has 32 years of industry experience
Managing Director: Choi Dong Il (South Korea)
Director: Lee Wa Chun (South Korea)
Director: Maheshwar Karmacharya (Nepal)
Independent Director: Dr. Navaraj Pant
Possible Opening Price After Listing
Although the IPO price is Rs. 100, NEPSE will set the first trading price based on net worth.
The first trading range will be around:
Minimum: ~Rs. 106.61
Maximum: ~Rs. 319.83
Actual price will depend on supply and investor demand after listing.