July 13, 2022 | Investopaper
After issuing the shares to the locals, Upper Hewakhola Hydropower Company Limited is currently selling 15,00,000 shares to the general public in the second phase of the Initial Public Offering (IPO). The IPO to general public is open from Ashad 24, 2079 BS. Due to over-subscription of shares, the IPO issue will close on Ashad 29, 2079 BS.
Out of the total shares, 2 percent or 30,000 units are reserved for the employees of the company. Likewise, the mutual fund schemes are allotted 5 percent or 75,000 shares. Therefore, the general public can apply for the remaining 13,95,000 shares.
One can apply for a minimum of 10 shares and a maximum of 100,000 shares.
Care Ratings Nepal has provided [CARE-NP BB (Is)] ratings to the company. Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations in Nepal.
IPO To Locals
In the first phase of the IPO, Upper Hewakhola Hydropower Company had sold 500,000 shares to the locals of the project-affected areas from Jestha 10, 2079 BS. Due to full subscription of shares, the IPO issue was closed on Jestha 24, 2079 BS.
Locals of Sankhuwasabha District could apply for the shares.
Interested locals could apply for a minimum of 10 shares and a maximum of 100,000 shares.
In total (including locals and general public), the hydropower plans to float 20,00,000 shares in the public offering. At a par value of Rs 100, the total public issue amounts to Rs 20 crores.
For the public issuance, the company had received approval from Securities Board Of Nepal (SEBON). Sebon granted the permission to the company on Baiksakh 22, 2079 BS for the issuance of shares.
NMB Capital is the issue manager for the IPO.
About Upper Hewakhola Hydropower Company
Upper Hewakhola Hydropower Company is operating the Upper Hewa Khola Hydropower Project at Hewa Khola in Sankhuwasabha.
The project is a run of the river type with an installed capacity of 8.5 MW. It generates about 46.28 gigawatt hours of electricity annually. Nepal Bank and Agriculture Development Bank, under the leadership of NMB Bank, have invested 70 percent in the project. The project is completed with an investment of about Rs 1.42 Arba.