Fully government-owned electricity authority NEA is issuing IPO. The government has nodded the authority to the public as part of its second financial restructure. Now, it only requires approval from the Ministry of Energy, Water Resources, and Irrigation to draw public investment.
NEA (Nepal Electricity Authority) is responsible for power generation, trade, and distribution in Nepal and outside. So far it was fully owned by the government. Now, it has decided to go public meaning the people will have a share in the profiting government entity.
NEA Managing Director Kulman Ghising has said the company is in the advanced phase to issue its IPO. It is waiting on approval from the Energy ministry and once asserted, it will proceed.
The discussion of issuing shares to the public has taken place. After we complete procedures, we will issue the IPO, Ghising told Arthik Abhiyan.
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NEA is issuing IPO with a strong credit rating
“NEA had long been at a loss. But now it is profiting and has improved its credit ratings which reflects its strong financial position. Now, complying with its Act, NEA is issuing IPO to draw in public investment”, he added.
Recently, ICRA Nepal, the pioneering rating agency in Nepal gave NEA a “Double-A Plus” credit rating. This means the company now has an extremely less risk to meet its financial commitments. This will encourage a wide public attraction towards NEA for investment when it announces IPO.
The IPO craze has swept Nepal in recent years. NCHL shows the total Demat users exceeding 5 million at the moment. When NEA issues its own IPO, a lot of them will be sure to apply for the shares in the government-owned company. Will you be one of them? Do let us know in the comments below.