The state-owned power utility, Nepal Electricity Authority (NEA), is set to raise NPR69 billion through an initial public offering (IPO), a proposal for which has been forwarded by the Ministry of Energy, Water Resources and Irrigation to the Cabinet for approval.
The latter’s endorsement will pave the way for NEA to sell up to 10 per cent of its shares to the general public. NEA plans to invest the IPO funds in several large hydropower and transmission line projects. It will contribute to the equity of hydropower projects such as Dudhkoshi (635 MW), Upper Arun (1,061 MW), Arun 4 (490 MW), Budhi Gandaki (1,200 MW), and Chainpur Seti (215 MW) with a combined capacity of around 3.6 GW, as well as 400 kV transmission lines from eastern Nepal to the far-western region, including the Lamahi–Attariya section and several substations. NEA plans to sell its shares at a premium price following the IPO. NEA’s current net worth per share stands at NPR115, while the proposal seeks to sell each share at NPR230 per share, which will help it raise NPR60 billion for a 10 per cent stake sale. Through the IPO, NEA plans to increase its authorised capital to NPR300 billion.