Opening Price Range of Muktinath Krishi Company
The opening price range of Muktinath Krishi Company Limted is from Rs. 76.81 to Rs. 230.43. Nepal Stock Exchange (NEPSE) will determine this price range based on the audited financial report of the fiscal year 2078/79. The net worth per share of the company is Rs. 76.81 in the financial report. The financial ratio of the company has been published in the official website, you can check it below too.
About IPO Issue of Muktinath Krishi Company
Muktinath Krishi Company issued total of 11,48,000 unit IPO. The issue was opened at par value of Rs 100 to the general public from 8th to 12th Mangsir, 2080. Out of the total 14,00,000 units; 10% (1,40,000 units) was issued to Nepalese citizens working abroad, 3% (42,000 units) have been set aside for the employees of the company and 5% (70,000 units) have been set aside for the mutual funds. And the remaining 11,48,000 units was issued to the general public. Total of 12,74,567 applicants have applied for the issue oversubscribing the issue by 11.85 times. In the allotment module, 1,14,800 applicants were allotted 10 units each rest of the applicants (11,59,767 applicants) were returned with empty hands.
In total 4,300 applicants who applied for 59,880 units were disqualified due to various reasons.
How is the opening price range of the stock determined?
Nepal stock exchange (NEPSE) determines a new company’s opening price range based on the company’s book value (net worth per share). The net worth is taken from the company’s audited financial report issued during the IPO issuance. Every company has to publish it’s audited financial report and projected report of the company before applying for IPO issue to public. For example, if the book value of the company’s latest audited report is 100 then the opening price range will be 100 – 300. The minimum price should be the same as the book.
What is a special pre-open session?
A special pre-open session is a trading time for newly listed stock. When a new company gets listed in NEPSE for the first time, its share is traded in the special pre-open session for the first time. After trading in the pre-open session, its share starts to change in the continuous session which is 11 AM – 3 PM.