Upcoming IPO: Maya Khola Hydropower Co. Ltd.

Maya Khola Hydropower Company Limited is inviting the general public to be a part of its growth story through the second phase of its Initial Public Offering (IPO) which will open from Magh 13, 2079 BS. The company is offering 21,60,000 shares to the public, including mutual fund schemes and the employees of the company.

The public offering will close on Magh 17, 2079 BS, but if it remains under-subscribed until that period, the deadline for application will extend until Magh 27, 2079 BS. Out of the total shares, 120,000 shares are allotted to mutual fund schemes, 48,000 shares are reserved for the employees of the company, and the general public can participate in the remaining 19,92,000 shares.

The company had already sold shares to the locals of the project-affected areas and Nepalese in foreign employment in the first phase of the IPO from Mangsir 23, 2079 BS. The IPO to the Nepalese in foreign employment closed on Poush 8, 2079 BS, and the IPO to locals closed on Poush 17, 2079 BS, which was extended due to under-subscription.

The company issued 10,00,000 shares to the locals of the project-affected areas, amounting to Rs. 10 crores. Out of this, 600,000 shares were for the local residents of Ward Numbers 8 and 9 of Chainpur Municipality, Ward Numbers 3, 4, and 5 of Dharmadevi Municipality, and Ward Numbers 4 and 6 of Madi Urban Municipality of Sankhuwasabha District. The remaining 400,000 shares were open for locals of other wards of these three municipalities of Sankhuwasabha District to subscribe. Additionally, the company sold 2,40,000 shares to the Nepalese in foreign employment (10 percent of the general public’s quota).

Investors can apply for a minimum of 10 shares and a maximum of 100,000 shares. In total, the company plans to float 34 lakh shares in the two phases.

The Securities Board Of Nepal (SEBON) granted the approval for the public issuance on Mangsir 1, 2079 BS, after the company had submitted the application to the board on Baisakh 28, 2079 BS seeking permission for the public issue. The company has signed an agreement with Prabhu Capital Limited for the issuance of primary shares, and the agreement letter for the appointment of Prabhu Capital as the issue manager was signed on Chaitra 12, 2077 BS (March 25, 2021) by Bijay Maan Sherchan, Executive Chairman of Maya Khola Hydropower, and Dinesh Thakali, Managing Director of Prabhu Capital. After the issue of the IPO (if fully subscribed), the general public, along with locals, will possess 34 percent shares in the company while the promoters will have 66 percent ownership.

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