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Kalinchok Hydropower is set to issue its initial public offering (IPO) from April 5.

The company will open the IPO for the general public in the second phase after completing share allocation to project-affected locals and Nepalis working abroad in the first phase.

A total of 684,750 shares have been reserved for the general public.

Investors can apply for the shares until April 8. The company has received approval from the Securities Board of Nepal to issue 1.375 million shares worth Rs 137.5 million, representing 25 percent of its issued capital of Rs 550 million, at a face value of Rs 100 per share.

Care Ratings Nepal has assigned the company a CARE-NP BB issuer rating, indicating a moderate level of risk in its ability to meet financial obligations.

RBB Merchant Banking has been appointed as the issue and sales manager for the IPO.

Kalinchok Hydropower is developing a 5 MW Sangu Khola Hydropower Project with a total cost of Rs 1.2 billion. The cost per megawatt stands at Rs 24.14 million.

As of mid-January, the company’s net worth per share is Rs 106.65, while earnings per share stand at Rs 1.46. The company has reported retained earnings of Rs 27.4 million, according to its disclosures.