Solu Hydropower to Open IPO for General Public from Poush 29
Solu Hydropower will open its IPO for general investors from Poush 29, following the completion of allocations to locals and foreign-employed Nepalis.
Solu Hydropower Limited is set to open applications for its initial public offering (IPO) to the general public from Poush 29, marking the second phase of its public issue.
The company had received approval to issue 20% of its issued capital of Rs 10 billion, equivalent to 20 million ordinary shares with a face value of Rs 100 each. Of the total allocation, 10 million shares have already been pre-allotted to project-affected local residents, while 1 million shares were issued and allotted to Nepalis employed abroad who obtained labor approval from relevant authorities.
In the current phase, the company has reserved 500,000 shares for mutual funds and 300,000 shares for employees. The remaining 8.2 million shares, worth Rs 820 million, are being offered to general investors.
Applications can be submitted for a minimum of 10 shares and a maximum of 100,000 shares. The issue will close on Magh 4 if fully subscribed, with a final deadline of Magh 14.
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.
Solu Hydropower is developing the 82-megawatt Lower Solu Hydropower Project, which has an estimated total cost of Rs 16.30 billion. The project has a remaining generation license validity of 25 years, with a simple payback period of 7.68 years and a discounted payback period of 12.09 years.
The issue is being managed jointly by Nabil Investment Banking Limited and Himalayan Capital Limited. Investors may apply through the C-ASBA system via SEBON-approved banks and financial institutions, as well as through the Mero Share online platform operated by CDS and Clearing Limited.