Kathmandu: Solu Hydropower Company has completed the allotment of its initial public offering, with shares distributed on Monday at the office of issue and sales manager Nabil Investment Banking.
The company had opened the public issue to general investors over a subscription window running from late December to early January in the Nepali calendar.
It has regulatory approval to issue shares worth 20 percent of its Rs 10 billion issued capital, equivalent to 20 million shares.
Of that total, 10 million shares had already been allocated to residents of the project-affected areas, and 1 million shares were set aside for Nepali citizens working abroad who had obtained official labor approval.
Additional reservations included 500,000 shares for mutual funds and 300,000 shares for company employees.
The remaining 8.2 million shares, worth Rs 820 million, were offered to the general public.
The IPO drew overwhelming interest, leading to allotment through a lottery system.
Applications were submitted by 2,471,007 investors seeking a combined 29,027,430 shares, far exceeding the shares available.
As a result, 820,000 applicants received shares at the minimum allotment of 10 shares each, while the rest went empty-handed due to the heavy oversubscription.
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