Two agri-firms set for IPO

Two private agri-related firms — Nepal Warehousing Company Limited (NWCL) and Shreenagar Agro Industries Limited (SAIL) — are in their planning stage to go public.

Nepal Warehousing is all set to go public with its application by the Securities Board of Nepal (SEBON) approved on September 27. 

The NWCL, which works in the agri-business value chain providing modern storage facilities, is the first such company to issue Initial Public Offerings — 1,375,000 unit equity shares for the public, which is 20% of the total company holdings. The remaining 80% rests with the promoters.

The company operates three warehouse facilities, each in Koshi Province (Sunsari), Madhes Province (Parsa), and Lumbini Province (Kapilvastu) with a total storage capacity of 55,000 metric tonnes.

The company expects to pave the way for the industrialisation of grain mills, feed mills, and overall agriculture following the issuance of shares. At present the company has a target of warehousing maize, soyabean, and wheat which are mostly consumed as raw materials for feed millers. 

In other news, Shreenagar Agro has finalised its internal preparations, which include the board-level approval and hiring the share issuance manager, to apply with SEBON to go public.

The company provides livestock farmers with day-old chicks and fingerlings, and nutritious feed for the growth of chicks and fish. The company further engages with the farmers on a contract basis, where the former buys chickens, eggs, and fish from the latter.

The company also trains farmers, offers technical services, and monitors their progress through its agri service centre.