KATHMANDU, Nov 23: Solu Hydropower has opened the issuance of its Initial Public Offering (IPO), allocating the first phase to project-affected locals and Nepalis working abroad.
The company has reserved 10 million shares for residents of the affected areas. Of this, 4 million shares are allocated to locals of Solududhkunda Municipality Wards 7 and 11, and Thulung Dudhkoshi Rural Municipality Ward 1 of Solukhumbu district—categorized as the highly affected zone. The remaining 6 million shares are set aside for residents of other wards within the same municipalities.
Similarly, 1 million shares have been allocated for Nepalis currently employed overseas. Investors can apply for the IPO at a face value of Rs 100 per share. The issue manager has stated that applicants can apply for up to 100,000 shares.
Upper Solu Hydroelectric Company’s IPO opens
Locals from the affected areas may apply from December 7 until December 22, while migrant workers can submit applications until November 26.
After allotting shares to locals and migrant workers, the company will proceed with the second phase, issuing shares to the general public.
The company has received approval from the Nepal Securities Board to issue 20 million shares worth Rs 2 billion, representing 20 percent of its paid-up capital of Rs 10 billion.
Solu Hydropower is currently constructing the 82 MW Lower Solu Hydropower Project, which has an estimated cost of Rs 16.304 billion.
For the IPO rating, Infomerics Credit Rating Nepal has assigned the company an IRN BB Issuer Rating, indicating average credit risk.
Nabil Investment Banking and Himalayan Capital Limited are serving as the issue and sales managers for the offering.
