Hotel Forest Inn Limited is closing the issue of its Initial Public Offering (IPO) allocated for Nepalese citizens working abroad today, marking the final day for foreign Nepalis to apply under this category. The IPO for this segment opened on Magh 4, 2082, and has already witnessed strong investor interest, reflecting growing confidence in Nepal’s hospitality sector and the company’s long-term prospects.
IPO Structure and Allocation
The company has an issued capital of Rs. 2 Arba, of which 20 percent, equivalent to 40 lakh unit shares, has been earmarked for public issuance. Within this public issue, 10 percent of the total public shares, amounting to 4 lakh unit shares, have been specifically reserved for Nepalese citizens working abroad. This dedicated allocation aims to encourage the participation of non-resident Nepalis in domestic capital markets and to strengthen their investment link with the national economy.
For foreign Nepali applicants, the minimum application size has been fixed at 10 units, while the maximum allowable application stands at 2,00,000 units. Applications are being accepted through the approved electronic application system, in line with regulatory provisions.
Strong Subscription Response
According to data published by the Central Depository System and Clearing Limited (CDSC), the IPO issue for foreign Nepalis has already been oversubscribed. As of the latest update, a total of 76,678 applicants have applied for 12,08,490 units. This translates into an oversubscription of approximately 3.02 times, highlighting robust demand despite broader market volatility.
Market analysts note that such a subscription level within a short window indicates sustained interest from migrant workers and overseas professionals seeking exposure to Nepal’s growing tourism and hotel industry.
Issue Management and Credit Rating
NIC Asia Capital Limited has been appointed as the issue manager for the public offering. The firm is overseeing the overall IPO process, including application handling, allotment procedures, and regulatory coordination.
In terms of creditworthiness, CARE Ratings Nepal Limited (CRNL) has assigned a rating of ‘CARE-NP BB-’ to the long-term bank facilities of Hotel Forest Inn Private Limited. While the rating suggests a moderate level of risk, it also reflects the company’s developing operational profile and reliance on project execution and market conditions within the hospitality sector.
Company Background and Hotel Project
Hotel Forest Inn Private Limited was incorporated on November 22, 2010, to develop and operate premium hospitality properties in Nepal. The company is currently constructing a hotel in Budhanilkantha, Kathmandu, one of the capital’s prominent and rapidly developing areas.
The hotel project spans a total land area of 142,783 square feet and is designed to feature 102 room keys. Upon completion, the property is proposed to be categorized as a five-star hotel, targeting both international and high-end domestic travelers.
International Brand Affiliation
Adding to its market appeal, Hotel Forest Inn has entered into a license agreement with InterContinental Hotels Group (IHG), a globally recognized hospitality company. Under this agreement, the hotel will operate under the ‘Holiday Inn’ brand, an American-based mid-scale international hotel chain known for standardized services and global brand recognition.
Industry experts believe that the association with an established international brand could enhance the hotel’s competitiveness, improve occupancy rates, and support long-term revenue stability once operations commence.
Outlook and Investor Sentiment
The hotel is expected to begin operations in October 2023, subject to project completion and regulatory approvals. Investors are closely watching the company’s execution timeline, tourism recovery trends, and overall economic conditions, which will play a critical role in determining future performance.
With the IPO issue for foreign Nepalis closing today, attention will now shift to the allotment process and the subsequent phases of the public offering. The strong subscription response so far underscores continued investor confidence in Nepal’s hospitality sector and the growing participation of overseas Nepalis in the country’s capital market development.
