KATHMANDU – Ridge Line Energy Limited is set to open its Initial Public Offering (IPO) for the general public starting February 11 (Magh 28). Following the successful allotment of shares to project-affected locals and Nepalese citizens employed abroad, the company is now moving into the second phase of its public issuance.

The company received approval to issue 22% of its issued capital (amounting to NPR 26.07 crore), equivalent to 2,607,000 units of ordinary shares. Out of this, 1,185,000 units were previously allocated to locals of the project-affected areas, while 142,200 units were distributed to Nepalese migrant workers.

Subscription Details In this upcoming phase, a total of 1,180,260 units will be available for the general public. This follows the deduction of 28,440 units reserved for company employees and 71,100 units set aside for mutual funds.

Minimum Application: 10 units
Maximum Application: 50,000 units
Face Value: NPR 100 per share

Timeline and Procedures The subscription will close early on February 15 (Falgun 4), with a final deadline of February 24 (Falgun 13) if the issue is not fully subscribed. Prabhu Capital Limited has been appointed as the issue and sales manager. Interested investors can apply via C-ASBA approved banks and financial institutions or through the 'Mero Share' online platform.

Project Profile and Risk Rating The company currently operates the 9.05 MW Super Chepe Hydropower Project, which began commercial production on January 22, 2024 (Magh 8, 2080).

Financials: The total project cost stands at NPR 2.09 billion, with a per-megawatt cost of NPR 231.6 million.
Payback Period: The simple payback period is estimated at 7.4 years, while the discounted payback period is 10.75 years.
Credit Rating: Care Rating Nepal has assigned a 'CARE-NP BB' issuer rating, indicating a moderate risk regarding the company's ability to meet its financial obligations.

The license for the project remains valid for over 30 years and 11 months, ensuring a long-term operational window for the energy producer.