Three companies floating primary shares to raise Rs 133m

KATHMANDU, June 13: Two hydropower companies and a microfinance company are preparing to float their primary shares to the general public.

Once their applications are approved by the Securities Board of Nepal (Sebon), Rs 133.46 million worth of primary shares will be floated in the market.

According to the Sebon, Radhi Bidyut Company has applied for permission to issue 764.55 million units of primary shares worth Rs 76.46 million to general public, while another hydropower company, Nepal Hydro Developer Ltd, is also looking to float 390,000 units of shares worth Rs 39 million. Similarly, Support Microfinance Bittiya Sanstha Ltd has also sought approval of the capital market regulator to issue 180,000 units of primary shares. The microfinance wants to collect Rs 18 million as capital from the public. These three companies will float their shares to the public at the par value of Rs 100.

Apart from these three companies, five other hydropower companies are also preparing to launch their IPO. According to the Sebon, it has received application from Akhukhola Jalbidhut Company Ltd (800,000 units), Garjang Upatyaka Hydropower Ltd (200,000) and Joshi Hydropower Development Company Ltd (371,400) to float shares to project-affected locals. Shuvam Power Ltd (200,000) and Panchakanya Mai Hydropower Ltd (1.1 million) have also sought the Sebon's nod to float their shares to local people.

Similarly, Rasuwagadhi Hydropower Company Ltd and Sanjen Jalvidhyut Company Ltd are also offering their primary shares to employees of promoter shareholding company and employees of lending institutions. Rasuwagadhi is floating a total of 16.42 million units to public, and Sanjen is offering a total of 8.76 million units of shares.

Sebon officials say the regulator will give its nod to these companies to float their shares to the public after reviewing their documents and completing other processes.

In recent months, more hydropower companies are approaching the Sebon to collect funds from the public either to expand their projects or develop new ones. Though the Sebon and the government have been providing incentives for the real sector companies to go to the public for generating capital and list their shares for trading, there has not been much interest from real sector companies. The Sebon has even decided to allow companies to issue their shares on 'free pricing model with certain cap', ending almost mandatory requirement to issue shares on a par value of Rs 100.