IPO issues of two hydropower companies approved by SEBON; a total of 4.8 Million units to be issued

Mon, Feb 24, 2020 3:00 PM on IPO/FPO News, Latest,
IPO issues...

Securities Exchange Board of Nepal (SEBON) has approved two hydropower companies to issue IPO, Liberty Energy Company Limited and United Idi Mardi & RB Hydropower Limited.

Liberty Energy Company Limited has received approval to issue 3,750,000 ordinary shares to the public at par value of Rs.100 per share to raise capital worth Rs.37.50 Crore. Out of this, 1,500,000 units (10% of total capital) are for the local people of the project affected area and 2,250,000 units (15% of total capital) are for the general public.

NIBL Ace Capital Limited has been appointed as the issue manager.

ICRA Nepal Limited has assigned a [ICRANP] IPO Grade 4 to the Rs.37.50 Initial Public Offer of Liberty Energy Company Limited. Instruments with this grading are considered to have below-average fundamentals.

The company is developing the 25 MW Upper Dordi ‘A’ HEP in Faleni and Dhodeni VDC, Lamjung district of western Nepal.

Similarly, United Idi Mardi & RB Hydropower Limited will be issuing 1,050,000 ordinary shares to the public at par value of Rs.100 per share to raise capital worth Rs.10.50 Crore. Out of this, 420,000 units (10% of total capital) are for the locals of the project affected area and 630,000 units (15% of the total capital) are for the general public.

Global IME Capital Limited has been appointed as the issue manager.

Care Ratings Nepal has assigned grading of ‘CARE-NP IPO Grade 4’ to the proposed Initial Public Offer (IPO) of United Idi-Mardi and R.B. Hydropower Limited (UIMHL). ‘CARE-NP IPO Grade 4’ indicates Below Average Fundamentals.

The project promoted mainly by individual promoters from different background along with two institutional promoters for setting up of a 7MW run-of-river, Upper Mardi Khola Hydropower Project in Kaski district of Nepal. This project is constructed under BOOT (Build, own, Operate and Transfer) mechanism. After issue of proposed IPO of Rs.105 Million, the promoters and public holding ratio is expected to be in the ratio of 75:25.