August 21, 2023 | Investopaper
IPO Allotment Of Manakamana Engineering Hydropower Limited
BOK Capital Market Limited, the issue manager for the initial public offering (IPO) of Manakamana Engineering Hydropower Limited, has concluded the IPO allotment process on Sunday.
After the allotment, 2,27,662 applicants have received 10 shares each.
A total of 13,11,517 valid applicants had subscribed for the shares. With the allotment, more than 10.84 lakh applicants were left empty-handed.
To view the IPO result of Manakamana Engineering 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, Manakamana Engineering 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 Shrawan 28, 2080 BS.
The company had issued 24,16,620 shares in the second phase of the IPO. This included 6,16,620 shares that remained under-subscribed by the locals in the first phase. Out of the total shares, 100,000 shares are reserved for the mutual fund schemes while 40,000 shares are reserved for the employees of the company. Hence, the general public could participate in the remaining 22,76,620 shares.
Due to over-subscription of shares, the public offering was closed on Shrawan 31, 2080 BS.
One can apply for a minimum of 10 shares and a maximum of 100,000 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 Ashad 19, 2080 BS.
The IPO to the foreign-employed Nepalese was closed on Shrawan 2, 2080 BS.
Similarly, the IPO to locals was closed on Shrawan 9, 2080 BS. Earlier, the issue was set to close on Shrawan 2, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
The company had issued 10 percent of the issued capital i.e. 800,000 shares to the locals of Ward No. 5,6,7, & 8 of Gaurishankar Rural Municipality, Ward No. 4 of Bigu Rural Municipality and Ward No. 3 of Kalinchowk Rural Municipality of Dolakha District.
Likewise, the company had floated 200,000 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 1,00,000 shares. Likewise, the foreign-employed Nepalese could subscribe for a minimum of 10 shares and a maximum of 50,000 shares.
In total (including the first and second phase), the company has plans to sell 28,00,000 shares in the IPO at a face value of Rs 100. Hence, the public issue amounts to Rs 28 crores.
For this purpose, Securities Board Of Nepal (SEBON) had given the approval to the company on Ashad 5, 2080 BS. The company had submitted the application to the board on Magh 16, 2079 BS. Only after receiving the approval from the regulatory body, the company can float the shares to the public.
BOK Capital Market Limited is the issue and sales manager. The agreement for public offering was inked by Mr. Krishna Bahadur Upreti, chairman of Manakamana Engineering Hydropower and Mr. Kundan Sharma, CEO of BOK Capital Limited. The hydropower company has also appointed BOK Capital as its share registrar.
After the IPO (if fully subscribed), the general public along with locals will possess 35 percent shares in the company while the promoters will hold the remaining 65 percent shares.
At current, Manakamana Engineering Hydropower is operating a 5 MW hydroelectric project at Dolakha district.