The government-owned enterprise Nepal Oil Corporation Limited (NOC) is planning on issuing an Initial Public Offering (IPO) soon. The Corporation’s Executive Director Umesh Prasad Thani shared that the company will soon call for public investment.
At Nepal LG Gas Industry Association’s 28th anniversary, Thani revealed the plan which should be exciting given the turnaround the enterprise has achieved in recent years.
He said that after the release of the Securities Registration and Issuance Regulation, 2073, it was amended seventh time till 2080 and it’s stated that the enterprise must be profitable in the last two fiscal years which delayed it from going public.
But he assured that the Corporation has a clear intention to go public as soon as the law permits. At the same time, Nepal LP Gas Industry Association Chairman Kul Prasad Malli demanded an automatic pricing mechanism for LP Gas. The government has implemented automatic pricing of fuels based on the pricing structure NoC rules while exporting petroleum products to Nepal. However, LP Gas cylinders have been exempted from this ruling.
Malli said that LP Gas traders have been cast aside by not structuring the automatic pricing as on petrol, diesel, and other petroleum products.
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NoC has long suffered from a financial downturn in recent years, however, in recent times, the company has finally succeeded in turning around its woes and becoming profitable. A chance to invest in the Corporation could be an exciting opportunity for the public as it remains one of the few government-owned companies to have positive financial conditions.
Nepal Oil Corporation was established in 2027 BS and is the sole responsible enterprise for importing and distributing petroleum products in Nepal.