NIC ASIA Capital expands 'IDEA to IPO' into one‑stop IPO facilitation service
KATHMANDU: NIC ASIA Capital is operating a service called IDEA to IPO, offering institutional advisory support under its merchant banking arm to guide companies from ideation through establishment, scale‑up and growth to IPO issuance.
Since launching the IDEA to IPO service, the firm has signed bilateral agreements with 34 companies; 20 private limited companies are in the process of converting to public companies and preparing IPOs, while six companies have already completed their IPO issuances.
Citing the importance of compliance with prevailing laws and regulatory standards, NIC ASIA Capital has expanded IDEA to IPO into a One‑Stop IPO Facilitation Service. The offering targets both operating companies and those yet to be established that intend to issue shares to the general public in the future, and is being provided at a low service fee.
A central element of the service is the IPO‑Readiness Assessment Test (RATE). Under RATE, NIC ASIA Capital assesses a company’s compliance with requirements on capital structure, memorandum and articles of association, financial position, investor considerations and legal provisions as prescribed by the relevant regulatory bodies. The firm prepares a gap analysis report against a comprehensive checklist of IPO eligibility criteria and provides consultation to address identified weaknesses.
The assessment also covers valuation and pricing. NIC ASIA Capital studies a company’s financial condition and applies the valuation model prescribed by the Securities Board of Nepal (SEBON) alongside prevailing international models to recommend an appropriate IPO price. The firm advises on the most suitable issuance method — premium, par value or book‑building — based on the company’s overall financial and strategic position. If a company is found eligible, NIC ASIA Capital advances the IPO process; if not, it provides guidance and a schedule to achieve eligibility.
The One‑Stop service further assists with company registration, amendments to memorandum and articles of association, capital restructuring and advice on timing and method of share issuance. It also supports companies during the pre‑IPO period by preparing statutory reports, facilitating listing on OTC markets, managing entry, cancellation or transfer of OTC transactions, maintaining shareholder registers, assisting with annual and special general meetings, distributing dividends and obtaining required certifications from the Office of the Company Registrar.
Companies planning to issue shares to the general publicin the future, and those currently seeking to undertake an IPO, may affiliate with NIC ASIA Capital’s One‑Stop IPO Facilitation Service.
