IPO worth Rs 3.36 billion in pipeline

Published On: January 7, 2018 08:20 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 7: A total of 15 companies are seeking the approval from Securities Board of Nepal (Sebon) to float 47.77 million units of shares worth Rs 3.36 billion to the public. 

Among these 15 companies, 13 are hydropower companies and two microfinance institutions. 

The much-awaited Upper Tamakoshi Hydropower Ltd (UTKHL) has also reached the Sebon for its initial public offering (IPO) approval. One of the biggest IPO's in Nepal's capital market, the hydropower company that is building the national pride project company has a plan to float its 15 percent shares to the general public and 10 percent to the local people. 

In total, the UTKHL is planning to put shares worth Rs 2.65 billion for public offering. Out of that, general public will be able to subscribe 15.89 million units of share while the rest 10.59 million units of share will be allocated for the local people of the affected areas where the hydropower project is being developed. 

CEDB Hydro Power Ltd has sought the Sebon's approval to float its 2.29 million units of share to the general public and collect Rs 228.93 million in capital. IPO worth Rs 73.63 million of Mailung Khola Jal Vidhyut Company Ltd is also in the pipeline. Rairang Hydropower Development Company Ltd has applied for the approval of issuing IPO worth Rs 84 million. 

Application of 15 companies including Upper Tamakoshi's IPO worth Rs 2.65 billion awaiting approval of Sebon

Two microfinance institutions -- Nepal Seva Laghubitta Sanstha Ltd and Asha Laghubittiya Sanstha Ltd -- are also going public soon. Nepal Seva Laghubitta Sanstha Ltd is looking for the Sebon's go-ahead to issue 180,000 units of share and collect Rs 18 million from the public while Asha Laghubittiya Sanstha Ltd has proposed IPO worth 30 million.   

Likewise, Akhukhola Jalbidhut Company Ltd (800,000 units), Garjang Upatyaka Hydro Power Ltd (200,000 units), Joshi Hydropower Development Company Ltd (371,400 units), and Laughing Buddha Power Nepal Ltd (978,000 units) are floating their primary shares to the local people, according to the data of Sebon. 

They will offer their shares to the local people at par value of Rs 100 once the capital market regulator gives them its approval. 

Unique Hydel Company Ltd (550,000 units), Union Hydropower Ltd (633,745 units), and Ghalemdi Hydro Ltd (550,000) are other companies that are seeking the Sebon's nod to tap the fund of  locals where their projects are getting developed to increase the companies' capital. 

Similarly, Mountain Hydro Nepal Ltd and Shuvam Power Ltd are also selling their shares to the locals. Mountain Hydro Nepal Ltd expects to collect Rs 125 million while Shuvam Power Ltd wants to draw Rs 20 million from the IPO, according to their filing at the Sebon.  

NMB Bank Ltd wants to increase its paid-up capital by offering FPO. According to the FPO plan submitted to the Sebon, it will float 11.42 million unit shares to the public. The commercial bank, however, has not disclosed the price of its share as it will add premium on the face value of Rs 100.

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