Peace Energy IPO Issue Set to Enter Capital Market With Manager Appointment

6th January 2026, Kathmandu

The landscape of Nepal’s capital market is preparing for a new entry as the Peace Energy IPO Issue officially enters its formal preparation phase. Peace Energy Company Limited has announced its strategic plan to offer an Initial Public Offering to the general public, marking a major turning point in its corporate trajectory and project financing strategy.

Peace Energy IPO Issue

To facilitate this complex process, the company has officially appointed Machhapuchhre Capital Limited to serve as both its institutional advisor and the issue and sales manager. This partnership represents a significant milestone, ensuring that the regulatory and procedural requirements for a successful public offering are handled with professional expertise.

The formal agreement governing the IPO issuance and advisory services was recently finalized during a signing ceremony. Chief Executive Officer Upendra Malakar represented Machhapuchhre Capital Limited, while Executive Chairman Dr. Madan Kumar Upreti signed on behalf of Peace Energy Company Limited. This appointment kickstarts the necessary steps to obtain approvals from the Securities Board of Nepal and other regulatory bodies, moving the company closer to its goal of public ownership.

Detailed IPO Structure and Share Allocation Plans

The Peace Energy IPO Issue is designed to invite broad public participation in the energy sector. Under the current approved plan, the company intends to issue 20 percent of its total issued capital to the general public. This translates to the issuance of 3.2 million ordinary shares. The capital raised through this offering is expected to play a vital role in supporting project financing and ensuring long-term corporate sustainability.

For public investors, this IPO offers a direct opportunity to invest in the renewable energy sector, which has become a cornerstone of the Nepalese economy. The issuance aligns with the broader national objective of mobilizing domestic savings to fund large-scale infrastructure and energy projects. By transitioning into a public company, Peace Energy is also committing to higher levels of transparency and accountability, which are essential for maintaining investor trust in the hydropower industry.

Progress on the Upper Kabeli Hydropower Project

The primary asset driving the value behind the Peace Energy IPO Issue is the Upper Kabeli Hydropower Project. This project, which has a total capacity of 28.1 megawatts, is currently under construction in the Sirijangha Rural Municipality of the Taplejung district. Utilizing the natural water flow of the Kabeli River, the project is a significant addition to the regional energy grid.

Construction progress has been steady and encouraging for potential investors. According to the latest updates from the company, physical construction has already surpassed the 61 percent mark. This level of completion reduces the risks often associated with early-stage hydropower investments and provides a clearer timeline for revenue generation. The company has targeted Kartik 14, 2083, as the deadline for completing construction and connecting the project to the national transmission grid. Once the project becomes operational, it will contribute a substantial amount of electricity to the national grid, helping to reduce Nepal’s reliance on energy imports and supporting the country’s energy security.

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The Crucial Role of Machhapuchhre Capital Limited

As the appointed manager for the Peace Energy IPO Issue, Machhapuchhre Capital Limited brings a wealth of experience to the table. As a subsidiary of Machhapuchhre Bank Limited, it operates as a licensed merchant banker under the strict regulations of the Securities Board of Nepal. The firm provides a comprehensive suite of financial services, including issue management, securities underwriting, investment management, and share registry services.

Their role in the IPO process is multifaceted. They will be responsible for managing the legal and financial documentation, coordinating with regulatory authorities, and ensuring that the share distribution process is handled fairly and efficiently. Their involvement provides an added layer of professional oversight, which is crucial for the successful execution of a public offering in a competitive market environment.

Strategic Importance for Investors and the Energy Sector

The upcoming Peace Energy IPO Issue is more than just a corporate fundraising event; it is a reflection of the growing maturity of the energy sector in Nepal. For individual investors, the IPO presents a chance to buy into a mid-sized hydropower project that already has visible physical progress. Hydropower assets are increasingly viewed as stable, long-term investments that are intrinsically linked to the industrial and economic growth of the nation.

From a sectoral perspective, the move to go public reinforces the importance of the capital market as a funding engine for national development. By allowing the public to own a stake in energy projects, the sector benefits from increased capital flow and improved corporate governance. This model of sustainable project financing ensures that the benefits of natural resource utilization are shared among a wider demographic of the population.

Future Outlook and Market Expectations

The successful initiation of the Peace Energy IPO Issue marks a proactive step toward the future of the company. With a reputable issue manager in place and the Upper Kabeli Hydropower Project moving toward its final stages of construction, the company is well-positioned to attract interest from both retail and institutional investors.

As the regulatory process moves forward, market participants will be watching the timeline for the share issuance closely. The success of this IPO will serve as another positive indicator for the hydropower investment landscape in Nepal, encouraging more private developers to seek public participation. For Peace Energy, this transition into a publicly-traded entity represents a commitment to excellence, growth, and the shared prosperity of its future shareholders.

For More: Peace Energy IPO Issue