Trade Tower Limited has successfully allotted shares for its Initial Public Offering (IPO) to the general public. The company issued 32,96,505.19 shares, worth Rs 32.96 crores, at Rs 100 per share.

The first phase of the IPO was previously opened for Nepalese workers living abroad. The Trade Tower’s second phase IPO was opened to the general public from Jestha 14 to Jestha 20, 2082.

Share Distribution Breakdown

Out of the total 3,97,169.30 shares offered:

• 10% (3,97,169.30 shares) were already allotted to Nepalese workers living abroad.
• 2% (79,433.86 shares) were set aside for company employees.
• 5% (1,98,584.65 shares) were reserved for mutual funds.
• The remaining 32,96,505.19 shares were made available to the general public.

Allotment Process and Oversubscription

The second phase of the IPO was oversubscribed by 7.31 times. The company received 2,074,285 valid applications, while 14,897 applications were invalid.

Through a lottery process:

• 329,650 applicants received 10 shares each.
• 5 applicants received 1 share each.
• 1 applicant was allotted 0.19 shares.
  

Conclusion

Trade Tower’s IPO allotment shows strong investor interest and growing confidence in the company. This allotment process marks a significant step forward for its financial future.

Trade Tower Limited (TTL) has opened the second phase of its Initial IPO for general public starting today, from Jestha 14th to Jestha 19th, 2082. If the issue is not fully subscribed within this period, the deadline will be extended up to Jestha 28th, 2082.

Earlier, the company had successfully issued 10% of the total 39,71,69,300 shares, i.e., 3,97,169.30 units of IPO shares to Nepalese citizens working abroad. Out of the remaining shares, 2% or 79,433.86 units have been set aside for the company’s employees, and 5% or 1,98,584.65 units have been allocated for mutual funds. The remaining 32,96,505.19 units of shares are now being issued to the general public through this IPO at a par value of Rs. 100 each.

About Company

Established in 2006, Trade Tower Group is a leading business conglomerate in Nepal, specializing in leasing, financing, and infrastructure development. Its parent company, Trade Tower Limited (formerly Kanchanjunga Housing Limited), was founded in 2007 and operates from Thapathali, Kathmandu. The group’s flagship project, Trade Tower Thapathali, was completed in 2011. It has since expanded into hospitality with Hotel Crystal Pashupati, a three-star hotel in Gaushala, which began partial operations in 2024. With over 350 promoters, the company is chaired by Mr. Shiva Hari Dangal. Post-IPO, promoter ownership will remain at around 51%. Focused on growth, the group continues to drive innovation in the infrastructure and hospitality sectors.  

Trade Tower Limited has announced an Initial Public Offering (IPO) exclusively for Nepalese citizens working abroad. The IPO of Trade Tower is opening today, 8th Baishakh, and will remain open until 22nd Baishakh, 2082. Applications must be submitted within this period, as the deadline will not be extended.

Key Share Allocation Details

Note: Unsold shares reserved for employees, foreign workers, or the collective fund will be offered to the general public.

Key Highlights of the IPO

• Total Capital: Rs. 81.56 crores.
• Public Issue: 48.696% (39,71,693 units worth Rs. 39.71 crores).
• Investment Range: Apply for 10 to 1,000 units per applicant.
• Issue Manager: LS Capital Limited.
• Eligibility: Nepalese citizens abroad with valid labor permits.
• Ownership: Over 350 promoters currently hold 100% shares, but post-IPO, their stake will reduce to 51%.

Utilization of the IPO Raised funds

Purpose of the Trade Tower IPO Issue

Net Worth Details of the Company

Issuer Rating of Trade Tower

As per this prospectus, the ordinary shares to be publicly issued have been rated “[ICRANP-IR] BB-” by ICRA Nepal Ltd., authorized by the Securities Board of Nepal under Rule 3 of the Credit Rating Regulations, 2068. This rating, reaffirmed on January 20, 2025, indicates a moderate risk of default in timely financial obligations. ICRA Nepal’s ratings range from [ICRANP-IR] AAA (strong) to [ICRANP-IR] D (weak), with “+” or “-” showing position within the category. Details are in Clause Ga.22 (ta), page 51.

• Rating Date: Jan 20, 2025 (2081/10/07)
• Valid Until: Jan 20, 2026 (2082/10/07)

About Trade Tower Company (TTL)

The Company was established in 2007 and is a leading Nepali enterprise specializing in leasing, financing, and infrastructure development. Under the visionary leadership of Chairman Mr. Shiva Hari Dangal, the company has transformed from its origins as Kanchanjunga Housing Limited into a dynamic player in housing, hospitality, and commercial real estate.

Key Ventures & Achievements:

• Trade Tower, Thapathali: A landmark commercial complex in Kathmandu, operational since 2011. Built on a 32-year leasehold from Nepal Food Corporation, it has delivered consistent rental income for over a decade, establishing itself as a reliable revenue stream.
• Crystal Hotel, Gaushala: A luxurious 3-star hotel with 90 rooms, partially operational since April 2024. This venture significantly boosts the company’s earnings while enhancing Nepal’s hospitality sector.
• Bhaisepati Public Housing Project: A completed residential initiative that catered to urban housing needs, with all units sold to satisfied clients.