Sherza Ventures Limited (SVL), an e-commerce and trading company that deals with hyper retail and wholesale plus provides a platform of a common marketplace for young entrepreneurs and farmers’ products, has floated initial public offering (IPO) to raise Nu 247mn.
The company has floated Nu 19mn equity shares at Nu 13 per share.
The shares will be made available to public for investment through its official broker Royal Insurance Corporation of Bhutan Limited (RICBL).
The company requires a minimum paid up capital of Nu 20mn to float the IPO.
SVL will also have to show its profit for the past two years and need track record of the company.
The Chief Executive Officer of Royal Security Exchange of Bhutan (RSEB), Dorji Phuntsho said that it is a first kind of new generation entrepreneur floating the IPO.
“The company will have a lot of advantages floating the IPO. The risk of the company will be shared among the share holders, public will be more aware of the products which will work as marketing channel and company will have entire structure and will have significant shareholders,” said the CEO.
He said that government would also benefit by broadening the tax.
The CEO of SVL, Jurmay Chopel said that he is floating the IPO mainly to invest in the capital and cash flow to expand the company.
He said that the company will focus on Human Resources training and development, IT infrastructure, stock and working capital and fixed asset development.
“Currently, there is approximately Nu 30bn market per year just for food consumption alone in Bhutan. However, the trading market is unorganized. Thus, there is a huge advantage for the first movers especially with technology as its core drive,” said the CEO.
SVL aspires to service at least 10% of the market and in the next three years, which will generate Nu 3bn revenue every year.
SVL with its flagship brand, “Allstore Ecosystem,” will pursue the idea of shareholder becoming the core customers of the company.
A press release from SVL states that since basic necessities such as food and other consumable items are a must buy, the public is currently losing this opportunity to convert it into its own benefits. Thus, SVL plans to offer benefits to its own shareholder in the form of discounts, promotional schemes, and special privileges thereby, ensuring a greater return of dividends.
It states that it will encourage its shareholders to buy from their own company at a competitive price, earn profit, enjoy schemes and, at the same time, make the company sustainable together.
For the general public it will focus on customer services, competitive price and products schemes to seek continuous business growth.
SVL was incorporated in 2015 with a capital investment of Nu 30mn. Currently the capital has further been raised to Nu 109mn.
Dechen Dolkar from Thimphu