New Criteria Proposed for Hydropower and Infrastructure Companies Issuing IPOs
Summary
The Securities Board of Nepal has proposed stricter IPO eligibility rules for hydropower and infrastructure companies, including minimum net worth requirements and independent technical verification. The draft guidelines also tighten fund-use, disclosure, and ineligibility provisions to curb paper progress and inflated project costs.
Key Points
- The Securities Board of Nepal has proposed new IPO eligibility criteria for hydropower and infrastructure companies under the draft Guidelines for General Eligibility for Public Issuance, 2083.
- Hydropower projects must meet a minimum net worth per share of at least the face value and undergo independent technical testing before public issuance.
- Companies will need to submit a due diligence certificate, maintain separate bank accounts for IPO proceeds, and file quarterly and annual utilization reports.
- Projects with serious construction disruption, misleading prospectus information, or blacklisted or financially implicated founders or directors will be barred from issuing IPOs.
