Kathmandu, May 22: The Rawa Energy Development Limited has published an offer letter to issue its Initial Public Offering (IPO) to the general public. The company will be issuing 643,667 unit shares of Rs 100 face value from 18th Jestha, 2080 BS. The early closing date of this issue is on 22nd Jestha and if the issue is not fully subscribed, it can be extended up to 32nd Jestha, 2080.
Earlier, the company had issued 280,000 unit shares worth Rs. 2.8 crores to the project-affected locals of Khotang District out of which only 87,370 units or 31.2% were allotted to valid applicants. Thus, the remaining 192,330 units of unsubscribed shares of project-affected locals are added to 560,000 units (20% of the issued capital which is reserved for the general public) to make a total of 752,330 units for the general public.
Out of the total 752,330 units; 56,000 units have already been issued and allotted to Nepalese citizens working abroad, 37,616 units have been set aside for mutual funds, and 15,047 units have been set aside for employees of the company. The remaining 643,667 units are for the general public.
Overall, 70% of shares are of the promoter shareholders in the company.
Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 10,000 units.
CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating assigned of ‘CARE-NP BB (Is)’ to Rawa Energy Development Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
Rawa Energy Development Ltd is a public limited company, incorporated on August 16, 2009, as a private limited company and later converted to a public limited company on June 28, 2019. It is promoted by business persons having long experience in hydropower and other sectors for setting up Hydroelectric Projects (HEP) in the territory of Nepal. The company has a 3 MW Upper Rawa Khola Small Hydropower Project (URKHP) in Khotang District which has been in commercial operation since September 20, 2020. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism.
