Kathmandu: Solu Hydropower Limited is set to issue its initial public offering (IPO) to the general public starting January 13 (Poush 29), following the completion of share allocations for local residents and Nepalis employed abroad in the first phase.
The company has received regulatory approval to issue 20 million shares, equivalent to 20 percent of its issued capital of Rs 10 billion, amounting to Rs 2 billion. Out of the approved shares, 10 million units have already been allotted to local residents of the project-affected area, while 1 million shares have been distributed to Nepalis working abroad.
In the second phase, Solu Hydropower will issue the remaining 8.2 million shares, worth Rs 820 million, to the general public. In addition, the company has reserved 500,000 shares for collective investment funds and 300,000 shares for employees.
According to the company, applications can be submitted for a minimum of 10 shares and a maximum of 100,000 shares. The IPO application window will remain open until January 14, while early applications can be submitted starting January 4.
For the purpose of the public issue, Solu Hydropower has received a ‘Double B’ issuer rating 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 has been jointly handled by Nabil Investment Banking Limited and Himalayan Capital Limited. Investors can apply through the C-ASBA system via C-ASBA member banks and financial institutions, as well as through the Mero Share online platform.
With the public issue, Solu Hydropower aims to broaden public ownership while mobilizing capital for its hydropower operations and future expansion plans.
