In a significant development for the Nepali investment landscape, Sonapur Minerals and Oil Ltd and Mathillo Mailun Khola Jalvidhyut Limited have announced their Initial Public Offerings (IPOs).
Sonapur Minerals and Oil Ltd is set to release 9,732,544 ordinary shares to the public, with the IPO opening on the 14th of Ashoj and closing on the 17th of Ashoj. The company has earmarked NPR 137.58 per share as premium, adding to the face value of NPR 100. This brings the total IPO price to NPR 237.58 per share for the general public.
Notably, Sonapur Minerals and Oil Ltd has structured the IPO to not only benefit local residents in the affected areas but also provide employment opportunities for Nepali individuals abroad. The company has received labor approval from the relevant authorities and is allocating 1,500,000 shares for this purpose. Additionally, a consortium of investment funds will be allocated 75,000 shares.
Mathillo Mailun Khola Jalvidhyut Limited’s IPO is scheduled to commence from the 18th of Ashoj and conclude on the 22nd of Ashoj. The company plans to issue 1,284,200 ordinary shares.
Similar to Sonapur Minerals, Mathillo Mailun Khola Jalvidhyut Limited has structured its IPO to have a positive impact on the local residents in the affected areas and create job opportunities for Nepali individuals abroad. A total of 12,842,000 shares, including 9,200 shares allocated for local residents, will be available for the general public.
For both IPOs, applicants can apply for a minimum of 10 shares and a maximum of 10,000 shares. The IPO subscriptions will close promptly on the respective dates.
The IPO issuance rates have been favorably rated by Credit Rating Nepal, with both companies receiving a ‘CARE NP Double B’ issuer rating, indicating an average risk capacity for the companies.
With these IPOs, both companies aim to raise capital for their respective projects. Sonapur Minerals and Oil Ltd, which manages a 14.3 MW hydropower project, estimates a total cost of NPR 2.5 billion. The company has set an expected return period of 7.10 years for ordinary investors and 12.76 years for those utilizing discounts.
The IPOs are being managed by NIMB ACE CAPITAL LIMITED for Sonapur Minerals and Oil Ltd and SANIMA CAPITAL LIMITED for Mathillo Mailun Khola Jalvidhyut Limited. Investors can apply through the online platform ‘Mero Share,’ developed by CDSC and Clearing Limited, with the approval of Nepal Stock Exchange, commercial banks, and their designated branches.
| Attribute | Company 1 | Company 2 |
|---|---|---|
| Company Name | Sonapur Minerals and Oil Ltd | Mathillo Mailun Khola Jalvidhyut Limited |
| Type | Ordinary | Ordinary |
| Total Shares | 9,732,544 | 1,284,200 |
| Opening Date (BS) | 2080-06-14 | 2080-06-18 |
| Closing Date (BS) | 2080-06-17 | 2080-06-22 |
| Issue Manager | NIMB ACE CAPITAL LIMITED | SANIMA CAPITAL LIMITED |
| Status | Nearing | Nearing |
| Min Quantity | 10 | 10 |
| Max Quantity | 150,000 | 10,000 |
| Issuing Rate (per share) | NPR 100 | NPR 100 |
| Premium Amount (per share) | NPR 137.58 | Not Applicable |
| Total Issue Amount | NPR 237.58 | NPR 100 |