Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Solu Hydropower has announced the issuance of its initial public offering (IPO) for the general public in the second phase, amounting to NPR 8.2 billion. The IPO will be opened for public subscription starting January 12 (Poush 29) after the completion of share allocation to project-affected locals and Nepalis employed abroad.
According to the company, a total of 8.2 million shares, equivalent to NPR 8.2 billion, have been earmarked for general investors following the distribution of shares to locals and foreign-employed Nepalis. The subscription period for the general public will remain open until January 17 (Magh 4). Investors may apply for a minimum of 10 shares and a maximum of 100,000 shares.
The hydropower company has received approval from the securities regulator to issue 20 percent of its total paid-up capital of NPR 10 billion, equivalent to 20 million shares worth NPR 2 billion, through the IPO. General investors can apply via the C-ASBA system through their respective banks and financial institutions using online platforms.
The company stated that allowing a minimum application of 10 shares ensures participation from small investors as well. It further informed that loan arrangements for project construction have already been finalized with domestic and foreign banks, and the physical progress of the project is reported to be satisfactory.
Upon completion, the project is expected to generate approximately 450 gigawatt-hours of electricity annually, contributing to the national transmission system and strengthening Nepal’s overall power supply.
Out of the total issuance, the company has already distributed 10 million shares to project-affected local communities. Of these, 4 million shares were allocated to residents of highly affected areas, including specific wards of Solududhkunda Municipality and Thulung Dudhkoshi Rural Municipality in Solukhumbu district, while 6 million shares were distributed to residents of other wards within the same local governments.
Solu Hydropower is currently developing the 82-megawatt Lower Solu Hydropower Project, with an estimated project cost of NPR 16.304 billion.
For the IPO, the company obtained an issuer rating of “IRN BB” from Infomerics Credit Rating Nepal, indicating a moderate level of risk in the company’s capacity to meet its financial obligations.
The issue and sales management of the IPO are being handled jointly by Nabil Investment Banking and Himalayan Capital Limited.
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