Trade Tower IPO Oversubscribed Over 7 Times

Trade Tower Limited’s IPO has received over seven times more applications than available shares. CDS and Clearing Limited confirmed that the IPO application period ended, Jestha 20, with a 7.08 times oversubscription.

The company offered 3,296,505 shares to the public, but 1,961,391 applicants applied for 23,360,070 shares. The IPO was initially open from Jestha 14 and extended by one day to Jestha 20.

Trade Tower received SEBON approval to raise NPR 397.17 million by issuing 3,971,693 shares, representing nearly 49% of its paid-up capital of NPR 815.6 million. Of these, 10% were reserved for Nepalese working abroad, with employees and investment funds also allocated shares.

Funds from the IPO will primarily repay a NPR 300 million loan from Laxmi Sunrise Bank. Additionally, NPR 90 million will be invested in expanding Hotel Crystal Pashupati and improving Sona Spa facilities. NPR 7.17 million is allocated for repairs to the Trade Tower building’s dome and roof in Thapathali.