City Hotel Limited has officially launched the auction process for 21,50,418 units of unsubscribed right shares, giving investors across Nepal another opportunity to secure ownership in one of the country’s leading hospitality companies.
The auction encompasses shares from three distinct categories — promoter, employee, and general public, offering diverse entry points for potential buyers. The process is being managed by Prabhu Capital Limited, which serves as the official sales manager.
Breakdown of Share Categories
Out of the total 21.5 lakh shares on offer, 19,89,999 units belong to the promoter group, making it the largest portion. Additionally, 6,000 units have been allocated from the employee group, and 1,54,419 units are from the general public group.
Both the promoter and employee category shares come with a lock-in period valid until Jestha 4, 2083 BS, in compliance with regulatory requirements. Interested investors are advised to carefully consider this restriction before placing their bids.
Bidding Rules and Allocation Criteria
The minimum bid price has been set at Rs. 100 per share, with investors free to quote any higher amount. The auction follows a sealed-bid system, where shares will be awarded to the highest bidder first. If any shares remain unallocated, they will subsequently be distributed to the next highest bidder until the entire volume is sold.
Applicants must bid for at least 100 units, though there is no upper limit, allowing large-scale investors to apply for the full quantity of shares.
Application Period and Submission Process
The application window opens on Karthik 23 and will close on Karthik 30, marking a strict deadline for interested participants. Any applications received after the deadline will not be accepted.
For investors in the Kathmandu Valley, bid submissions must be made at Prabhu Capital’s office in Kamaladi, Kathmandu.
Meanwhile, investors residing outside the Valley can participate by visiting designated Prabhu Bank branches in Biratnagar, Birgunj, Hetauda, Pokhara, Butwal, Surkhet, and Dhangadhi.
Background: The Right Share Issuance
City Hotel had previously issued 80 percent right shares of its paid-up capital — a total of 1,33,92,000 units worth Rs. 1.3392 billion — following approval from the Securities Board of Nepal (SEBON) on Shrawan 4.
This auction marks the final phase of that issuance, covering the portion of shares that remained unsubscribed during the initial offer. Successfully selling these remaining shares will complete City Hotel’s capital expansion plan and strengthen its financial foundation for future growth in Nepal’s competitive hospitality industry.
