Samling Power Company Limited is going to issue ordinary shares (IPO) to the public from November 19. The company has already distributed the ordinary shares issued for the locals of the project-affected areas from September 3 to September 4.
The company has sold 1.2 million ordinary shares (IPO) at a face value of Rs 100 per share and has sold 500,000 shares to project-affected locals.
Out of the total 730,000 shares to be issued, 2 percent or 14,600 shares have been allotted for employees and 5 percent or 36,500 shares for collective investment funds. The general public will be able to apply for the remaining 678,900 lots.
The general public can apply for the shares from November 19 to November 20. If full application is not received within that period, the application date will be extended till November 3. You will have to apply for a minimum of 10 lots of shares and a maximum of 20,000 lots of shares.
SBI Merchant Banking Limited will act as the issue and sale manager to make the ordinary shares of the company public. Investors can apply with the permission of the Securities and Exchange Board of Nepal (SEB) through participating banks and financial institutions and through the My Share online system operated by CDS & Clearing.
Cebon had allowed the company to issue and sell 1.23 million ordinary shares (IPO) at a face value of Rs 100 per share, equivalent to Rs 123 million.
Out of which, the company has already issued 500,000 ordinary shares for the residents of the project affected areas in the first phase. Out of the total shares to be removed, 60 percent or 300,000 lots are for the residents of Ilam district and the remaining 40 percent or 200,000 lots are for the project affected areas of Ilam municipality ward no. 8 and 10 and Maijogmai village municipality ward no. 4 and 5 were reserved for the residents.
Rating agency ICRA Nepal has given ‘IPRA NP BB Minus’ rating to the company’s IPO. This rating indicates that the company has a moderate risk in fulfilling its financial obligations on time.