City Hotel Limited (CITY), a leading player in Nepal’s hospitality sector, has successfully allotted its 1:0.80 ratio right shares to applicants on 11th Kartik, 2082, the company announced. Investors who did not receive allotment were refunded starting 12th Kartik, 2082.
Rights Issue Details of City Hotel
The Hotel issued a total of 13,192,000 units of right shares during the subscription period from 23rd Bhadra to 26th Ashwin, 2082. The book closure date for eligibility in the rights offering was set on 27th Shrawan, 2082, ensuring that only investors who held shares before that date could apply for the new shares.
Allotment and Unclaimed Shares
Out of the total applied shares, 1,12,41,582 shares were successfully allotted to 49,185 valid applicants. However, 19,50,418 shares (14.78%) remained unclaimed by eligible investors, highlighting partial non-participation in the rights issue.
Implications for Investors
The allotment marks a significant milestone in City Hotel’s capital expansion strategy, providing existing shareholders the opportunity to increase their stake in the company. Investors who were allotted shares are expected to benefit from the future growth and profitability of the Hotel.
The company has urged shareholders and potential investors to stay informed about future corporate actions and maintain close coordination with the company’s share registrar for timely updates regarding allotments and refunds. This successful rights offering reinforces City Hotel’s commitment to shareholder participation while supporting its long-term growth and operational expansion plans in the hospitality sector.
