Kathmandu- Annapurna Cable Car is preparing to reapply for approval to issue its Initial Public Offering (IPO).
The Securities Board of Nepal (SEBON) had previously rejected the company’s IPO application, stating that it did not meet the required net worth criteria.
Kalu Gurung, Chairman of Annapurna Cable Car, said, “We are resubmitting the application.”
He added, “Inactive companies were supposed to be rejected, but even companies that are actively operating were removed. We have brought this issue to the attention of the Public Accounts Committee.”
Gurung also said that a request has been made to the Public Accounts Committee to amend the directive.
According to the Public Accounts Committee, companies with a net worth below 90 should not be allowed to issue IPOs.
Following the update of financial statements, the board removed 14 companies with a net worth below 90 from the IPO pipeline. Annapurna Cable Car is among those companies.
The company has been in operation for two years. Chairman Gurung said that the request to amend the directive aims to ensure that companies already in operation are not removed from the IPO pipeline.
Annapurna Cable Car plans to issue 3.1 million IPO shares, which will represent 20 percent of its issued capital. After the IPO issuance, the company intends to invest in additional projects.