City Hotel Limited has received final approval from the Securities Board of Nepal (SEBON) to issue 13.39 million rights shares, marking a major milestone in Nepal’s hospitality and capital markets. This rights offering represents 80% of the company’s current paid-up capital of NPR 1.33 billion, showcasing the company’s bold growth strategy and financial vision.
The rights share offering will follow a 1:0.80 ratio, meaning existing shareholders can purchase 80 additional shares for every 100 they currently own. This structure ensures fair participation and helps maintain shareholder influence and governance balance.
SEBON granted approval on Shrawan 4, signaling strong confidence in City Hotel Limited’s corporate governance and long-term plans. This green light allows the company to move forward with a strategic capital raise aimed at boosting its financial strength and market position.
Prabhu Capital Limited has been appointed as the issue manager for the offering. Their experience will help ensure the process complies with all legal and market standards, while also delivering a smooth and efficient execution.
More than just a capital boost, this rights share initiative will help City Hotel improve its liquidity, prepare for future expansion, and reinforce its presence in Nepal’s growing tourism and business travel sector. The company aims to use the raised capital to take advantage of new opportunities and expand its operations.
With this step, City Hotel Limited is setting a new standard for hospitality sector financing in Nepal. The rights issue reflects the company’s commitment to transparency, growth, and shareholder value positioning it for long-term success in an evolving economic landscape.
The successful completion of this rights share offering is expected to transform City Hotel into a stronger, more competitive player in Nepal’s tourism industry.
