Rawa Energy Development Issuing IPO Shares to the locals of Khotang District and Nepalese Employed Abroad from Chaitra 23

Rawa Energy Development Limited has published an offer letter to issue an Initial Public Offering (IPO) to the project-affected locals of the Khotang District and Nepalese citizens working abroad.

The IPO issue for the locals and Nepalese citizens working abroad will open on 23rd Chaitra and close on 7th Baisakh, 2080. Note that for the locals of Khotang District, if the issue is not subscribed by the early closing date, the issue can be extended till the 22nd Baisakh. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 28 Crores of which 10% i.e. 2,80,000 unit shares worth Rs. 2.8 crores have been allocated to project-affected locals of Khotang District. Meanwhile, 20% of the company's issued capital i.e. 560,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 56,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

For the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 10,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units while the maximum quantity is 2,800 units.

Prabhu Capital Limited has been appointed as the issue manager. The promoter-public share ratio will be 70: 30 after this IPO.

CARE Ratings Nepal Limited (CRNL) has assigned the issuer rating assigned of ‘CARE-NP BB (Is)’ to Rawa Energy Development Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Rawa Energy Development Ltd is a public limited company, incorporated on August 16, 2009, as a private limited company and later converted to a public limited company on June 28, 2019. It is promoted by business persons having long experience in hydropower and other sectors for setting up Hydroelectric Projects (HEP) in the territory of Nepal. The company has a 3 MW Upper Rawa Khola Small Hydropower Project (URKHP) in Khotang District which has been in commercial operation since September 20, 2020. The project is constructed under BOOT (Build, Own, Operate, and Transfer) mechanism.

Offer Letter