KATHMANDU, Jan 4: Solu Hydropower has announced plans to issue an initial public offering (IPO) for the general public in the second phase. Following the distribution of shares to project-affected locals and Nepalis working abroad, the company will open the IPO for the public from January 13.
After allocating shares to locals and migrant workers, the company has set aside shares worth Rs 8.2 billion—equivalent to 8.2 million units—for general investors. The public can apply for the IPO from January 13 to 19, with applications ranging from a minimum of 10 units to a maximum of 100,000 units.
Solu Hydropower has received approval from the Securities Board of Nepal to issue shares worth Rs 2 billion, representing 20 percent of its total paid-up capital of Rs 10 billion. Applications can be submitted online through the C-ASBA system via banks and financial institutions.
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The company said that the provision allowing applications from as low as 10 units ensures access for small investors. It also stated that financing for the project has been arranged through domestic and foreign banks, and that physical progress is currently satisfactory.
Once completed, the project is expected to generate around 450 gigawatt-hours of electricity annually, contributing to the national transmission system.
Out of the total issuance, the company has already distributed 10 million shares to project-affected locals. Of these, 4 million shares were allocated to residents of the highly affected areas—wards 7 and 11 of Solu Dudhkunda Municipality and Ward 1 of Thulung Dudhkoshi Rural Municipality in Solukhumbu district—while 6 million shares were distributed to residents of other wards of Solu Dudhkunda Municipality and Thulung Dudhkoshi Rural Municipality.
Solu Hydropower is currently developing the 82-megawatt Lower Solu Hydropower Project, with an estimated cost of Rs 16.304 billion.
For the IPO, Infomerics Credit Rating Nepal has assigned the company an “IRN BB (Issuer)” rating, indicating an average level of risk in meeting its financial obligations.
Nabil Investment Banking and Himalayan Capital Limited have been appointed as the issue and sales managers for the IPO.
