Kathmandu. The Securities Board of Nepal (SEBON) has prepared the basis for the pricing of the IPO (IPO). The board has prepared the basis for determining the price of the IPO through the ‘Securities Capital Reform Policy, 2083’.

companies that issue IPOs on the basis prepared by the board will not be allowed to offer the IPO price of on their own. 

According to the new arrangement, the price of the IPO will be determined on the basis of the analysis of the actual position of the company, the use of scientific valuation method, diversification in the pricing system, sectoral specific criteria and protection of small investors ।

According to the ‘Securities Capital Reform Policy, 2083’, this provision will not be valid for the book building system.

The Board has made this provision based on the recommendations of the Primary Market Reform Facilitation Task Force formed by the Securities Board of Nepal (SEBON).With this, it is believed that the trend of arbitrary pricing in the IPO issuance process will end.