The CEDB Hydropower Development Company (CHDC) will begin selling shares in an initial public offering (IPO) on Friday (tomorrow). The company intends to issue 2,518,230 ordinary shares with a face value of Rs 100 each, totaling Rs 251.82 million.
The company is about to launch an initial public offering (IPO) worth Rs 251.823 million, or 30% of its issued capital of Rs 839.41 million. Employees will receive 2% of the overall issue, or 50 thousand 365 shares, and the mutual investment fund will receive 5%, or 125 thousand 911 shares. The remaining 23 lakh 41 thousand 954 shares will be available for sale to the general public.
Sunrise Capital Limited has been named as the issue and sales manager for the IPO. The public will be able to apply for the IPO by Baisakh 21, and if it is not completely sold before then, it will be extended until Baisakh 31.
The public can apply via C-ASBA member banks and financial institutions that have been approved by the Nepal Securities Board, as well as through the Meroshare website.
Care Rating Nepal has given the company a ‘Care NP Double B IS Rating’ in the rating given by the company for IPO issuance. This means that the company’s willingness to bear liability is at an average risk.
Four hydropower projects are currently under construction, with three others already operational. In Lamjung district, the company has two hydropower projects: the 4.40 MW Radhi Small Hydropower Project and the 183 KW Syange Hydropower Project.
CEDB Hydropower Limited, which was established in 2009, has earned Rs 13.05 per share and has net assets per share of Rs 138.79 in the current fiscal year. In FY 2075/07, the firm paid out a 10.54 percent cash dividend and a 7.37 percent cash dividend in FY 2076/07. In the same way, it is expected to pay a dividend in the coming fiscal year.
After the selling of ordinary stock, the creator and the general public would have a 70:30 share ratio. This company’s paid-up capital is currently $587.59 million. The company’s paid up capital will be increased to Rs. 839.41 million after the selling of ordinary shares.