Bhat-Bhateni Supermarket and Departmental Store, one of the largest marts in the country, has been making preparations to go public, said Min Bahadur Gurung, chairman and managing director.

The main aim of going public is to share the company’s wealth with the people who have made it the success it is, he said. “The company has grown from a small cold store to a big supermarket and become a household name for shopping over the last three decades,” said Gurung. “This is because of the support we have received from the public, and we want to share our wealth with the public.”

According to Gurung, Bhat-Bhateni’s initial public offering (IPO) will be the first stock market launch by any retail outlet in the country. Private limited companies are usually not interested in going public if they are making profits and business is good.

Banks and financial institutions and insurance companies must go public as per the law. For the retail and manufacturing sector, there is no such rule requiring companies to sell shares to the general public.

“Banks are making a lot of money by going public. We can also be profitable by making an IPO,” said Gurung. “By going public, we also want to enhance transparency in our business.”

Bhat-Bhateni plans to IPO after two years. “We will expand our network to 21 before going public over the next two years.” A new Bhat-Bhateni store is scheduled to be opened in Dharan on Saturday to bring the number of outlets to 11.

Bhat-Bhateni plans to price its IPO at a premium which means shares will cost more than the face value. A company has to be making net profits for three years consecutively to charge a premium.

Bhat-Bhateni is currently on an expansion spree. It said that the 11th store in Dharan, Sunsari had been set up with a total investment of Rs510 million. Bhat-Bhateni Dharan will throw open its doors on Saturday.

The new outlet will also extend Bhat-Bhateni’s network to three cities. The company presently maintains nine stores in Kathmandu and one in Pokhara. Bhat-Bhateni began as a provision store in 1984, and rapidly expanded to become the largest supermarket chain in Nepal.

“The company has an annual turnover of Rs9 billion. Although sales fell 10 percent last year, we hope to make gains this year,” said Gurung. Bhat-Bhateni employs more than 5,000 employees, and the new outlet in Dharan will provide 200 more jobs.

On the occasion of the inauguration of the store in Dharan, the company has offered a 10 percent discount on readymade garments and other goods and a 5 percent discount on liquor. The new outlet, like the others in the chain, will offer goods ranging from essential commodities to electronics.