City Hotel Plans Major Rights Share Issuance, Files Proposal with SEBON
City Hotel Limited has applied to the Securities Board of Nepal (SEBON) for approval to issue 80% rights shares worth NPR 1.33 billion at a 1:0.80 ratio, with Prabhu Capital Limited as the issue manager.
City Hotel Limited has initiated the process to issue rights shares as part of its strategy to strengthen its capital base. The company has formally submitted an application to the Securities Board of Nepal (SEBON) seeking approval to issue 80% rights shares based on its current paid-up capital.
According to the proposal, the company plans to issue the shares in a 1:0.80 ratio, meaning shareholders will be entitled to receive 0.80 rights shares for every one share they currently hold. In total, 13,392,000 units of rights shares—equivalent to NPR 1.3392 billion—will be issued once approved.
The application was submitted to SEBON on Jestha 11, 2082. The company aims to utilize the funds raised through this rights offering to support its business expansion and strengthen financial stability.
Prabhu Capital Limited has been appointed as the issue and sales manager for this rights share issuance.
This move by City Hotel reflects its ongoing efforts to enhance operational capacity and attract further investment through improved capital structure.