Kathmandu, Greenlife Hydropower Limited is issuing an initial public offering (IPO) to the general public starting today.
The company is offering a total of 3,496,400 units of shares worth Rs 34 million among which 69,928 units have been set aside for the company employees while 174,820 units have been separated for the funds, which leaves a total of 3,251,652 units of shares left for the public to vie for.
The IPO will be open till February 9 and can be extended till February 19 incase the IPO remains unsubscribed, which seems very unlikely with the current IPO 'craze' ongoing among the retail investors in the country. There is a high chance that the shares will be distributed in the form of a lottery for minimum units of shares.
Before this, the company had opened an IPO for the locals of the project-affected area in Dolkha in which 94 per cent were unsubscribed. After distributing the applied units of shares to the locals, the unsubscribed shares have been included in the total share in the current IPO.
Greenlife has designated BOK Capital as IPO issue manager.
The company, which is operating Khani Khola 1 Hydropower Project in Gaurishankar Rural Municipality of Dolakha, has a paid-up capital of Rs 1.44 billion.
After the IPO issuance, capital distribution will be as follows - promoters shareholders 80 per cent, locals of project affected area 0.58 per cent and general public 19.42 per cent.
CARE Ratings Nepal Limited (CRNL) has assigned 'CARE-NP B+ (Is)' rating to Greenlife Hydropower
Limited (GLH). Issuers with this rating are considered to offer high risk of default regarding timely
servicing of financial obligations, in Nepal.
Meanwhile, CRNL has assigned grading of 'CARE-NP IPO Grade 4' to the proposed Initial Public Offer (IPO) of Greenlife Hydropower Ltd (GLH). 'CARE-NP IPO Grade 4' indicates Below Average Fundamentals. CRNL assigns IPO grades on a scale of Grade 1 to Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals
HydroPower Index in Nepal Stock Exchange (NEPSE) on Thursday was up by 1.2 per cent or 36.88 points to 1958.93 points. As many as 18,719,387 units of shares were traded yesterday with 35 advancing and two companies declined.
Just some weeks ago, Nepal Infrastructure Bank had distributed the largest IPO in the country so far.