Peak Power IPO application deadline extended till February 22

Kathmandu. Shikhar Power Development Limited has extended the deadline to apply for the initial public offering (IPO) for the locals of the project-affected areas. The company has extended the application period after the application was not received as per the demand.

The company had issued the IPO for the residents of the project-affected areas from January 6. Earlier, the deadline for submission of applications was February 20. However, the company has said that the application can be submitted till February 8 as there are not enough applications within the stipulated time. The company has also made it clear that if sufficient applications are received before the stipulated time, the IPO issuance will be closed before February 8.

As per the approval from the Securities Board of Nepal (SEBON) on January 30, the company is issuing 3.2 million units of ordinary shares at a face value of Rs 100 per share. Out of the total offered shares, 10% of the issued capital i.e. 980,000 units of ordinary shares worth Rs 980,000 have been issued to the locals of the project-affected areas.

The shares were issued on the basis of the Environmental Impact Assessment report and the power generation license. Dhorpatan Municipality Ward No. 1 to 10 has been affected by the power transmission line of the project. The ward nos. 2, 3, 4 and 5 of the erstwhile Burtibang VDC have been allocated for the locals.

Similarly, 10% i.e. 2,22,000 units of ordinary shares worth Rs 22.20 crore have been issued to the citizens of Nepal who are employed abroad.

Applications can be place for minimum 10 units and maximum 10,000 units. They can bid for the shares from Global IME Bank, Naxal, Burtibang and Baglung Bazaar, Prabhu Bank, Gwalichaur Branch, Garima Bikas Bank, Burtibang and Sine Resunga Development Bank. The company will issue an IPO to the general public in the second phase.