Twenty companies are waiting for the go-ahead from the Securities Board of Nepal (Sebon) to issue 52 million primary shares worth more than Rs3.5 billion. They include 16 hydropower companies, two development banks, one commercial bank and one insurance company, said Sebon.  

Among them, 17 companies plan to conduct an initial public offering (IPO) and three will make a further public offering (FPO). Rasuwagadhi Hydropower will make the largest IPO by offering 16,421,040 shares worth Rs1.64 billion.

The company has allocated shares to promoter shareholding companies, employees who are members of the Employee Provident Fund and employees of the lending institution. It has appointed Siddhartha Capital, NIBL Capital Market, Global IME Capital and NCM Merchant Banking as issue managers. 

Sanjen Jalavidyut Company will make the second largest stock market launch by issuing 8,760,000 shares.

Kalika Power Company, Akhukhola Jalbidhut, Garjang Upatyaka Hydropower, Joshi Hydropower Development Company, Laughing Buddha Power Nepal, Unique Hydel Company, CEDB Hydro Fund, Union Hydropower, Mailung Khola Jal Vidhyut, Ghalemdi Hydro, Mountain Hydro Nepal, Shuvam Power and Panchakanya Mai Hydropower are among the other companies in the hydropower sector seeking Sebon’s approval to make an IPO. 

Among these hydropower companies, Mailung Khola Jal Vidhyut and CEDB Hydro Fund plan to issue primary shares to the general public while the others have allocated shares to locals.

Sebon has made it mandatory for hydropower companies to issue at least 10 percent of their stock to locals, said Sebon’s Deputy Spokesperson Niranjaya Ghimire.  

Meanwhile, the two hopeful development banks Unnati Microfinance Bittiya Sanstha and Samudayik Laghubitta Bittiya Sanstha plan to make IPOs worth Rs16.50 million and Rs30 million respectively. 

Butwal Power Company will launch 4,081,000 shares at its FPO. NMB Bank will offer 11,415,163 shares at its FPO. 

Similarly, Premier Insurance has applied for approval to issue 659,565 shares at its FPO. As per Sebon, Premier Insurance, Shuvam Power and Panchakanya Mai Hydropower are at the final stage of receiving permission from the regulator. 

Last week, Sebon gave the go-ahead to Radhi Bidhyut Company to make an IPO worth Rs76.45 million. Radhi Bidhyut has appointed Nabil Investment Banking as issue manager to float its primary shares.