Ridi Hydropower floats ordinary shares

Ridi Hydropower Development Company has floated 1.17 million units of ordinary shares with a face value of Rs 100 per unit from today.

The company that had received nod from the Securities Board of Nepal (Sebon) to issue shares worth Rs 117 million on February 3 will open its Initial Public Offering (IPO) till February 20.

 The 2.4-megawatt hydropower project has been developed on Ridi River in Gulmi and Palpa districts. "Some 58,500 units of shares have been separated to three mutual funds – Nabil Balance-1, Siddhartha Investment Growth Scheme-1 and Nagarik Yekanka Yojana – on proportional basis apart from some 23,500 units to its employees, according to Sebon regulation.

An investor can apply a minimum of 50 units to a maximum of 10,000 units, said the company that has appointed Civil Capital Market and Elite Capital as the issue managers.

The paid up capital of the hydel company will reach Rs 300 million, after the public issue. The hydropower company is also planning to develop 10-MW Iwa Khola Hydropower in Panchthar district.

Ridi Hydropower will become the sixth hydropower company to be listed at the Nepal Stock Exchange (Nepse) that already has Arun Valley Hydropower, Butwal Power, Chilime Hydro Power, National Hydro Power and Sanima Mai Hydropower under its hydropower sub group that is slowly changing the investment scenario in the stock market.

Barun Hydropower will be the seventh hydropower company to be listed at the Nepse as it had already sought permission to issue 243,000 units of shares to the locals of the hydropower affected area, whereas Upper Tamakoshi Hydro Power will be the eighth hydropower company as it is also planning to float 25.42 million units of shares.