Citizens Capital and Daunne Agro Farm sign agreement for IPO management

KATHMANDU:Citizens Capital Limited and Daunne Agro Farm Limited have signed an agreement to issue ordinary shares and hire a sales manager.

The deal was signed on Tuesday by Executive Director Binod Pokharel of Daunne Agro Farm Limited and Chief Executive Officer Sabir Bade Shrestha of Citizens Capital Limited.

According to the agreement, Citizens Capital will function as the selling manager for Daunne Agro Farm Limited's ordinary share issuance. Daunne Agro Farm is Nepal's largest egg producer, established in 2074 BS. Using completely automatic air conditioning technology imported from Germany and Malaysia, the company produces 1700 cartons of 'antibiotic-free' and high-quality eggs every day.

The company has used ERP software developed in Germany to document all the activities of the farm, through which the unit cost calculation of the eggs produced by the company, sales management, inventory management and other activities are monitored. In the future, the company plans to generate 2,600 cartons of eggs per day from 6 lakh chickens.

Adhyant Fund Management Limited's Nepal Opportunity Fund 1 has also invested in the company, which is located in Binayi Triveni Rural Municipality 3 in Nawalpur.  Citizens Capital Limited will consult with the company about the share issuance and manage the initial share offering (IPO) if the Nepal Securities Board approves it.