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Snow Rivers Limited, the promoter of the Super Kabeli ‘A’ Hydropower Project, is set to open its Initial Public Offering (IPO) from May 12.

The company will first issue shares to locals of the project-affected areas and Nepali workers employed abroad. In the second phase, shares will be opened to the general public.

Snow Rivers has allocated 778,125 units of shares worth Rs 77.81 million for this phase. Investors can apply for a minimum of 10 shares and a maximum of 1,000 shares at a face value of Rs 100 per unit until May 15.

Previously, the company had issued 937,500 shares worth Rs 93.75 million to project-affected locals. Similarly, 93,750 shares have already been allotted to migrant workers.

The company has received approval to issue 1.875 million shares worth Rs 187.5 million, equivalent to 20 percent of its issued capital of Rs 937.5 million.

ICRA Nepal has assigned the company an issuer rating of [ICRANP-IR] BB+, indicating a moderate risk in meeting its financial obligations.

Snow Rivers is developing the 13.5 MW Super Kabeli Khola ‘A’ Hydropower Project with an estimated cost of Rs 2.71 billion.

Sanima Capital has been appointed as the issue and sales manager for the IPO.

As of December in the current fiscal year, the company’s earnings per share stand at Rs 4.98, with a net worth per share of Rs 107.46. The company has reported retained earnings of Rs 55.9 million, according to its prospectus.