City Hotel Limited (CITY) has announced that the lock-in period for shares held by its promoters and employees will officially expire on Jestha 5, 2083. The company published a formal notice informing investors and stakeholders about the upcoming release of these previously restricted shares. The move follows the regulatory framework set by the Securities Board of Nepal (SEBON), which governs share lock-in provisions after initial public offerings (IPOs).
Shares Locked Since IPO Allotment
The promoter and employee shares had been under a mandatory lock-in period since the company’s IPO allotment three years ago. With the expiration date approaching, a substantial portion of these shares will become eligible for trading in the secondary market. According to company data, City Hotel Limited currently has a total of 30,132,000 units of shares listed on the Nepal Stock Exchange (NEPSE). Out of the total listed shares, promoters hold 27,118,800 units, while employees own 120,528 units. These shares have remained non-tradable during the lock-in period as per regulatory requirements.
Certain Shares to Remain Restricted
Despite the general expiration of the lock-in period, the company clarified that shares held by members of the Board of Directors and employees in higher management positions will continue to remain restricted from trading. This provision aligns with SEBON’s updated guidelines aimed at ensuring long-term commitment and stability within company leadership, while also protecting investor interests.
Potential Market Impact
Market analysts suggest that the release of a large volume of promoter shares could influence the stock’s liquidity and price movement in the short term. Investors typically monitor such developments closely, as an increase in tradable shares can lead to higher market activity. However, the actual impact will depend on whether promoters choose to offload their holdings or continue to retain their stakes in the company.
Current Market Performance
Shares of City Hotel Limited recently closed at Rs. 492.30 on the NEPSE. The stock has been part of Nepal’s growing hospitality segment, which has been attracting increased investor attention amid the gradual recovery of the tourism industry.
Investor Advisory
With the lock-in period nearing its end, investors are advised to closely track trading patterns and company disclosures in the coming weeks. The transition marks an important phase in the company’s post-IPO lifecycle, potentially reshaping its shareholding structure and market dynamics. The company has reaffirmed its commitment to transparency and regulatory compliance as it moves forward in this next phase of public trading.
