Nepal’s leading payment system operator, Fonepay Payment Service Ltd., is set to float its initial public offering (IPO). The company is planning to issue 20% of shares of its current paid-up capital to the public.
For its IPO issuance, the company will pass the proposal on Kartik 24 on its sixth annual general meeting (AGM). The company’s board of directors has convened the meeting after a meeting on Kartik 02.
Fonepay has a paid-up capital of Rs 51 crore (Rs 510 million). The company’s chief executive officer (CEO), Diwas Kumar Sapkota, has also confirmed the company’s plan for an IPO of 20% shares. The recent development comes after it emerged that Khetan Group will make an investment of 20% equity in the country’s most dominant digital payment operator.
Fonepay was launched in 2077. It has been making an attempt to issue its IPO for two years. It has reached an agreement with NMB Capital for the IPO issuance and sales management.
“We have only received an unaudited financial statement for the last year. After the audit, we will decide on the modality of the IPO issuance according to the company’s financial condition and propose it in the upcoming general meeting,” CEO Sapkota said, adding further, “We will issue 20 percent of the current paid-up capital through IPO. After the book closure, it will be decided whether to go for a premium price or a normal price as suggested by the issue manager.”
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Fonepay IPO coming at a premium rate!
Fonepay plans to issue a premium IPO. So, the planned 20% IPO of its paid-up capital will come for Rs 10.20 crore. But it’s not fixed yet.
“We will probably go at a premium price if possible. But whether we go or not will be known from the book closure,” says CEO Sapkota. “If the network and other indexes meet the criteria for going at a premium, we will issue an IPO at a premium.”
He shares that if the company goes for Rs 100 per share, the process will be quicker.
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Big prospects with Fonepay IPO
Fonepay IPO will be an object of interest to the public. It’s the country’s leading force in digital payment. Smartphone users use Fonepay QR to pay for goods and services on their digital wallets and mobile banking apps. Fonepay QR is also used by millions of merchants to receive payment. The company has also enabled cross-border payment for Indian citizens.
As of now, Fonepay allows tourists from 13 countries, including China, Thailand, Korea, Singapore and others to pay via QR scan. It boasts a network of 19 commercial banks, 14 development banks, 14 finance companies, 9 digital wallets, and 1 microfinance institution for mobile payment.
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In FY 2081/82, the company completed transactions of Rs 7 kharba, 66 arba, with 30 crore different transactions.
So, with a huge market presence and potential, Fonepay IPO could be a blockbuster when it comes for the public.
