City Hotel Limited, the operator of the luxurious Hyatt Place hotel in Kathmandu, is issuing an Initial Public Offering (IPO) for Nepalese. This unique opportunity allows Nepalese citizens to invest in a well-established hotel management company with a strong presence in the hospitality industry. This blog post will dive into City Hotel Limited’s IPO details and explore why it is a promising investment opportunity.
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What is Hyatt Place by City Hotel Limited in Kathmandu
The Hyatt Place, Hotel in Kathmandu, is a five-star hotel with a blend of modern and cultural architecture that caters to guests worldwide.
The Hyatt Place, Kathmandu, operates at 10 Ropani lands at Red Cross Road, Soalteemode, Tahachal, Kathmandu, Nepal.
The Hyatt Place offers 153 spacious rooms and suites with a Nepalese cultural environment and stunning views of the Soyambhu Nath temple and the Kathmandu valley.
It also provides various dining options, including a breakfast bar, Zing World of Flavours, Zing Sky bar and lounge, and a fitness centre. The hotel caters to a wide range of tastes and preferences. For those looking to host events, Hyatt Place also provides a banquet hall and meeting rooms to accommodate various gatherings.
What is City Hotel Limited’s IPO
City Hotel Limited offers 16,74,000 unit shares with a face value of Rs 100 each. Of these, 11,67,400 unit shares have been reserved for overseas Nepalese employees, 4% (66,960) for firm personnel, and 83,700 shares for mutual funds. The remaining 13,55,940 unit shares are available to the general public. After the IPO allocation, the total paid-up capital of City Hotel Limited will be Rs. 1.67 Arba.
Who can invest in City Hotel Limited’s IPO?
Nepalese citizens living and working overseas can invest in the 11,67,400 unit shares reserved for them. The remaining 13,55,940 unit shares are available to the general public.
You can invest a minimum of 10 units and a maximum of 2,000 units.
Why invest in City Hotel Limited’s IPO?
Investing in City Hotel Limited’s IPO presents a unique opportunity for Nepalese citizens to invest in a well-established hotel management company that operates some of the best hotels in the world by the name Hyatt Hotels Corporation.
Yes, Hyatt Place is a brand by Hyatt Hotels Corporation. You can find more information on their official website.
It is owned by the Golyan Group of Enterprises, a well-known and respected business conglomerate in Nepal.
In addition, City Hotel Limited has seven stockholders who have invested Rs. 1.50 arba in paid-up equity demonstrates the company’s stability and financial strength, making it a promising investment opportunity.
Only a few companies from the Tourism and hospitality sector are listed on Nepal Stock Market. City Hotel Limited is the 6th hospitality business listed on NEPSE after Soaltee Hotel Limited, Taragaon Regency Hotels, Chandragiri Hills Limited, Kalinchowk Darshan Limited and Oriental Hotels Limited.
Fundamental glimpse of City Hotel Limited.
The company’s net worth per unit for the fiscal year of 078/79 was Rs 87.83. For 79/80, the company expects a net worth of Rs 79.04.
The company’s EPS (earnings per share) currently stands at Rs. 2.97, which is expected to rise to Rs. 8.97 in the coming year. We can expect good growth for the company in the future.
Company owners will have to wait 15 years before they get profits from their actual investment, as the company has a simple payback period of 11 years and a discounted payback period of 15 years.
Care Rating Nepal has provided BB+, which means moderate risk.
How to invest in City Hotel Limited’s IPO?
Global IME Capital Ltd manages the IPO, and interested investors can apply through their website or visit their office.
Nepalese citizens living and working overseas can apply for the reserved unit shares from 21 Chaitra, 2079, with a deadline of Friday, May 5, 2080, via the Mero Share platform.
The general public can apply for the unit shares beginning Baisakh 25, 2080, and the issue will close early on 28 Baisakh. Both online and offline modes can be used to apply this IPO.
The issue may be extended until 8 Jestha 2080 if it still needs to be fully subscribed.
Update ( Mon 08/05/2023 )
IPO Open for General Public
City Hotel Limited has opened IPO shares to the general public today (25th Baisakh, 2080).
You can apply for this IPO from MeroShare or by going to your bank that provides an ASBA facility, filling up and submitting the physical form and providing information about your CRN number, date number, bank account number etc.
IPO Allotment Result for City Hotel Limited.
The IPO Result date for City Hotel Limited is May 18 2023, which is 5th Jestha 2080.
Response of IPO
The issue received a huge response, with 10,87,675 valid applicants applying for 1,18,33,710 units. Impressively, the issue was oversubscribed by 8.72 times.
In the allotment process, 1,35,594 applicants were chosen through a lottery and allocated ten units each. The remaining 9,52,081 applicants still need to receive units.
Mutual funds were allotted 83,700 units, while the company’s employees received 66,960.
Four thousand nine hundred ninety-two applicants who applied for 61,660 units were disqualified.
City Hotel Limited’s IPO presents a unique investment opportunity for Nepalese citizens living and working overseas to invest in a well-established hotel management company that operates one of the most luxurious hotels in Kathmandu. With a strong financial position and a stable ownership structure, City Hotel Limited is a promising investment opportunity for those who want to diversify their investment portfolio. Interested investors should take advantage of this opportunity to invest in a well-established hotel management company with a strong presence in the hospitality industry.