May 2, 2023 | Investopaper
IPO Allotment Of Mai Khola Hydropower Limited
Prabhu Capital Limited, the issue manager for the initial public offering (IPO) of Mai Khola Hydropower Limited, has concluded the IPO allotment process on Tuesday.
After the allotment, 1,26,941 applicants have received 10 shares each. One applicant has received one additional share.
A total of 13,63,266 applicants had subscribed for the shares. Out of the total, there were 12,67,285 eligible applicants. With the allotment, more than 11.46 lakh applicants were left empty-handed after the allotment.
To view the IPO result of Mai Khola Hydropower Limited, click the link below:
Second Phase: IPO To General Public
After issuing shares to the locals and foreign employed Nepalese in the first phase, Mai Khola Hydropower Limited had sold shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public was open from Baisakh 8, 2080 BS.
The company had floated 13,76,470 shares in the second phase of the IPO. Out of the total shares, 76,471 shares were allotted to the mutual fund schemes while 30,588 shares were reserved for the employees of the company. Hence, the general public could participate in the remaining 12,69,411 shares.
Due to over-subscription of shares, the public offering was closed on Baisakh 12, 2080 BS.
One could apply for a minimum of 10 shares and a maximum of 50,000 shares.
First Phase: IPO To Locals & Foreign-Employed Nepalese
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalese in Foreign Employment from Falgun 25, 2079 BS.
Due to full-subscription of shares, the IPO to locals and the Nepalese in foreign employment was closed on Chaitra 9, 2079 BS.
The company had issued 10 percent of the issued capital i.e. 3,92,157 shares to the locals of Illam District.
Similarly, the company had sold 1,52,941 shares to the Nepalese in foreign employment (10 percent from general public’s quota).
The locals could apply for a minimum of 10 shares and a maximum of 10,000 shares. Similarly, the Nepalese in foreign employment could subscribe for a minimum of 10 shares and a maximum of 50,000 shares.
In total (including first and second phase), the hydropower company will sell 19,21,568 shares in the IPO. At a par value of Rs. 100, the public issue amounts to Rs. 19.21 crores.
Securities Board Of Nepal (SEBON) had granted the permission to the company on Falgun 3, 2079 BS. The company had submitted the application to the board on Ashwin 30, 2079 BS seeking permission for public issuance. Only after the approval from SEBON, the company can issue the shares to the public.
The company has appointed Prabhu Capital Limited as issue and sales manager. The agreement for public offering has already been signed between the company and Prabhu Capital Limited in this regard.
After the IPO (if fully subscribed), the general public will possess 49 percent share in the company while the promoters will hold the remaining 51 percent shares.
About Mai Khola Hydropower Company Limited
Mai Khola Hydropower Company Limited was established on Shrawan 17, 2073 BS. The company is currently operating a 3 MW Super Mai Cascade Hydropower Project located at Illam District. The construction of this 3 MW project was started on Bhadra 18, 2076 BS. It started commercial electricity production from Ashad 14, 2077 BS.
The project generates 18.8-gigawatt hours of electricity annually. The electricity generated from the project is connected to the Godak substation.
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