A total of 21 companies have sought approval from the Securities Board of Nepal (Sebon) to make initial public offerings (IPOs) worth Rs 4.66 billion. Among the applicants are 15 hydropower companies, four microfinance, one merchant bank and one investment company.
Hydropower companies have applied to Sebon to issue shares worth Rs 2.7 billion. Universal Power Company has planned to make the largest IPO worth Rs 966.16 million. Union Hydropower will issue shares valued at Rs 353.43 million.
Sebon’s deputy spokesperson Niranjaya Ghimire said the financial documents of the companies applying to float primary shares were currently being reviewed. Sebon records show that most of the hydropower companies are vying to float shares to locals. According to Ghimire, hydropower companies are rushing to IPO as Sebon has made it mandatory for them to allot at least 10 percent of their stock to locals affected by the project.
Sayapatri Hydropower, Shuvam Power, Ru Ru Jalabidhyut Pariyojana, Mountain Hydro Nepal, Panchthar Power Company, Greenlife Hydropower, Mailung Khola Jal Vidhyut Company, Shiva Shree Hydropower, Joshi Hydropower Development Company, Ghalemdi Hydro, Garjang Upatyaka Hydro Power, Laughing Buddha Power Nepal and Unique Hydel Company are the hydropower companies applying to IPO.
The other companies that have asked Sebon for permission to float shares are CEDB Hydro Fund, Asha Laghubitta Bittiya Sanstha, Janasewi Laghubitta Bittiya Sanstha, Sparsha Laghubitta Bittiya Sanstha, Swabhimaan Microfinance Bittiya Sanstha and CBIL Capital. Recently, Sebon allowed three companies to make IPOs worth Rs1.49 billion. Among them, two hydropower companies, Himalaya Urja Bikas Company and Madhya Bhotekoshi Jalavidyut Company, have received the go-ahead to make IPOs worth Rs990,000 and Rs1.44 billion respectively.
Chautari Laghubitta Bittiya Sanstha received Sebon’s approval to issue primary shares worth Rs54 million. Madhya Bhotekoshi Jalavidyut Company is offering 24 percent of its issued capital to the general public. The Employees Provident Fund (EPF) is one of the main promoters of the Madhya Bhotekoshi project. In the first phase, the company will be floating 14,400,000 units of primary shares to the depositors and staff of the EPF and other lending institutions.
Himalaya Urja Bikas Company plans to make an IPO to locals on Tuesday. The company is constructing the Upper Khimti Hydropower Project with capacities of 12 and 7 MW. The company plans to produce electricity from these two plants by mid-March. Chautari Laghubitta Bittiya Sanstha has announced a special general meeting on Monday to announce the date of its IPO. The company has appointed NIBL Ace Capital as issue manager for its IPO. After the IPO, the paid-up capital of the company will reach Rs180 million.
– 15 hydropower firms
– Four microfinance firms
– One merchant bank
-One investment company
-Largest IPO in this group: Universal Power Company at Rs966.16 million
Source : The Kathmandu Post