Time Pharmaceuticals Sets IPO Price at Rs. 450 After Institutional Investors Complete Bidding

Kathmandu — Time Pharmaceuticals Limited has moved closer to issuing its Initial Public Offering (IPO) through the book building process after successfully completing the bidding process among qualified institutional investors.

The company has fixed the cut-off price at Rs. 500 per share based on the demand and valuation submitted by institutional investors. Under the book building rules, general investors will receive a 10 percent discount from the institutional cut-off price, allowing them to apply for the IPO at Rs. 450 per share.

The completion of the institutional bidding process marks a major step for the pharmaceutical company as it prepares to enter the public capital market. Unlike traditional IPOs with fixed pricing, the book building method determines share prices based on institutional investor demand and market valuation.

Time Pharmaceuticals plans to issue 1.0865 million ordinary shares, representing 20.50 percent of its issued capital of Rs. 530 million.

Of the total shares planned for issuance, 434,600 shares (40 percent) have been allocated to qualified institutional investors through the book building mechanism. The remaining 651,900 shares (60 percent) have been reserved for general investors.

The company has stated that investors applying for the public portion of the IPO will need to apply for a minimum of 50 shares. The allocation structure aims to ensure participation from both institutional and individual investors.

Following the successful completion of the institutional bidding process, the company will now seek approval from the Securities Board of Nepal (SEBON) to proceed with the public issuance.

The IPO date will be announced after receiving regulatory approval from SEBON.

The entry of Time Pharmaceuticals into the public market comes at a time when Nepal’s capital market has been showing increasing interest in sector-specific companies. The book building approach is expected to provide a more market-based valuation mechanism by allowing institutional investors to determine demand and pricing before public participation.

Analysts view the successful completion of the process as an important milestone for Nepal’s IPO market, as book building remains a relatively new mechanism compared to the traditional fixed-price IPO system. The effectiveness of the process will depend on investor participation, company performance and post-listing market response.