City Hotel Limited (CITY) has officially announced the extension of its ongoing rights offering deadline. Originally scheduled to close today, 12th Ashwin, 2082, the offering will now remain open until 26th Ashwin, 2082, providing additional time for existing shareholders to subscribe.
Size and Structure of the Rights Offering
The company is issuing 80% right shares, equivalent to 13,192,000 units at a ratio of 1:0.80, exclusively for its existing shareholders. The total issue amounts to Rs. 1.67 Arba.
Currently, City Hotel Limited has a paid-up capital of Rs. 1.67 Arba. Upon successful allotment and adjustment of the rights issue, the company’s paid-up capital will increase to Rs. 3.01 Arba, strengthening its financial foundation.
Subscription Status So Far
According to data from the Central Depository System and Clearing Limited (CDSC), as of now, a total of 46,754 applicants have applied for 10,00,197 units of rights shares. This translates to applications worth Rs. 10 crore, indicating a positive response but leaving significant room for additional subscriptions within the extended timeframe.
Issue Management and Key Details
The rights issue is being managed by Prabhu Capital Limited, which has been appointed as the official issue manager. Shareholders who held City Hotel Limited’s shares before the book closure date of 27th Shrawan, 2082, remain eligible to apply for the ongoing offering.
Strategic Importance of the Capital Raise
The extension of the deadline is expected to encourage more shareholders to participate in the rights offering, enabling the company to meet its capital-raising target. Analysts believe that the expanded capital base will support City Hotel Limited in financing future expansions, enhancing operational stability, and improving long-term competitiveness in Nepal’s hospitality sector.
