CEDB Hydropower IPO Result Published

CEDB Hydropower IPO Result Published:

CEDB Hydropower Development Company Limited Initial Public Offering (IPO) result (allotment) published on Baishakh 31, 2078, Friday (2021 May 14), 11: 00 AM. Accordingly, only 234,195 people allotted shares at the rate of at least 10 units. As there are more applications than demand for the shares of the company, the shares distributed at the rate of a minimum of 10 units as per the Securities Issuance and Distribution Directive. The rest of the applicants (1403464) empty-handed. According to CDSC, 16,85,625 valid applicants applied for 2,63,45,500 units of share.

The initial share IPO issued by CEDB Hydropower Development Company has received 11 times more applications. According to Sunrise Capital, CEDB's share issue and sale manager, 26.345 million units of shares have been subscribed from 1.685 million applicants. This is 11.24 times oversubscribed than the 2,341,954 units issued.

According to CDSC, 94.31 percent of the total applications received so far are online. Out of the total IPO applications of the company, 16 lakh 37 thousand 912 applications have been received online. Only the remaining 5.69 percent have physically gone to banks and financial institutions to buy shares.

25,18,230 shares  (2% or 50,365 shares allotted to employees, 5% or 1,25,911 shares allotted to collective investment funds) of CEDB Hydropower Development Company Limited with a face value of Rs. 100 per share and the remaining 23,41,954 ordinary shares have been issued

Capital Structure:

At present, the paid-up capital of CEDB is Rs. 587.58 million. The paid-up capital of the company will reach Rs. 839.41 million after the IPO sale to the locals and the general public. The authorized capital of CEDB is Rs. 1.5 billion and the issued capital is Rs. 838.41 million. After the IPO, the company's share ownership will remain at 70 percent of the founder and 30 percent of the public.

Average risk rating:

Care Rating Nepal has given Care NP Double B IS rating to the IPO issued by CEDB. This indicates an average risk in CEDB's ability to bear responsibility. CARE Rating Nepal had given a rating to CEDB's IPO on Ashoj 19, 2077. The rating will be valid for one year from the date of issue.

Detail Statement: