Super Khudi Hydropower Limited has started issuing its Initial Public Offering (IPO) to the general public from today (Falgun 5, Tuesday).
The company had received approval to issue 20 percent of its issued capital of NPR 1.55 billion, equivalent to NPR 310 million, or 3.1 million shares. Out of this, shares have already been allocated to project-affected local residents, Nepalis working abroad, and mutual funds.
In the second phase, the company has reserved 31,000 shares for its employees and is now issuing the remaining 1,286,500 ordinary shares to the general public.
Investors can apply for a minimum of 10 shares and a maximum of 100,000 shares. The IPO will close as early as Falgun 11 and no later than Falgun 20. Applications can be submitted through the C-ASBA system via banks and financial institutions.
CARE Ratings Nepal has assigned the company a Double B issuer rating, indicating a moderate level of risk.
Super Khudi Hydropower is operating the 26 MW Upper Khudi Hydropower Project, which has a total project cost of NPR 5.38 billion. The project’s electricity generation license has 27 years and 5 months remaining. The simple payback period of the investment is 7.21 years, while the discounted payback period stands at 13.42 years.
The share issue and sales manager for the IPO is Global IME Capital Limited.
This IPO offers a broad investment opportunity by including project-affected locals, Nepalis employed abroad, and now general investors, expanding public participation in Nepal’s hydropower sector.
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