Well, Arun Hydropower IPO got blazing response from the day one. After cancellation of Chilime IPO, the entire amount poured into Arun Valley IPO. According to the reports the IPO got oversubscribed on first day itself, on 23rd June 2009. “Yes, the report is true”. According to NMB, there was somewhat 7,000 application forms collected which amounted Rs 160 million. The company had floated 5,15,000-unit primary shares adding a premium of Rs 84 to the face value of Rs 100, making it Rs 184 per unit share.
The final official numbers are yet to come by end of the day, but looking the rush and given the released quantity of shares, this IPO might be the one which will be highly oversubscribed like Sunrise Bank IPO. One of the official from the collection center have clearly hinted the oversubscription might be somewhere around 35-40 times.
There are some reports claiming some funny incidents in some of the collection centers from the valley. Numerous applicants had applied to IPO thinking it was in fact Chilime Hydropower not even reading the fine printed form. Just bolstering the fact, Nepal still has herd natured investors, the investors thronged to the collection centers with bundles of cash thinking Arun Valley was in fact Chilime.
Much surprisingly, there was still huge group of people who didn’t even know what was Arun Valley, the company & what it did?
Some thought it was Bank, some development bank and one intelligent guy claimed it to be Construction Company who builds colonies & apartments.
It is true that people are much more aware than before regarding share & stock investment, but the fact is there still exists people with very less knowledge of how to apply for shares or what they should look into. People blindly follow the myth - No share can go below IPO Price. While we have living example of NTC (Nepal Doorsachar), NHPC (National Hydropower) whose current price is below than its initial IPO price. Be it investor’s ignorance or their carelessness, but such kind of naive players helps market to be driven by some cunning mafia’s. And at the end of the day, when they lose everything, these people give Secondary Market bad name by calling it - Casino.
Anyway, let’s not get off track from the main topic and Wish all applicants of Arun Valley Good Luck for their application. Believe me, we all applicant very much need it even to get allotted even 20% shares.
Source: nepseguide
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