Mabilung Energy Limited has officially launched its Initial Public Offering (IPO) to the public today, 26th Shrawan, 2082. The firm is offering 12,48,904 unit shares at a nominal value of Rs. 100 per unit. The IPO will initially close on 29th Shrawan, 2082; however, if the offering is not fully subscribed by that date, the cutoff will extend to 9th Bhadra, 2082.
The company’s issued capital amounts to Rs. 38.58 Crores. Of this, 48.9998%, equating to 18,90,530 unit shares, has been allocated to the public. From the total issued capital, 10%, translating to 385,824 unit shares valued at Rs. 3.85 Crores, has already been designated for locals impacted by the project in Sankhuwasabha district.
The remaining 38.9998% of the issued capital, amounting to 15,04,706 unit shares, has been offered to the general public. Within this public offering, 10% of 150,471 unit shares have been reserved for Nepalese citizens residing abroad. Additionally, 2%, or 30,095 units, have been allocated for the company’s employees, while 5% of the total shares offered, amounting to 75,236 units, are reserved for mutual funds. The balance of 12,48,904 units is available for the general public, starting today.
LS Capital has been appointed as the issue manager for the IPO. Investors can apply for a minimum of 10 units and a maximum of 50,000 units.
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] B+ (referred to as ICRA NP issuer rating B plus) to Mabilung Energy Limited. This rating suggests that issuers are perceived to have a heightened risk of default concerning the timely fulfillment of their financial commitments.
Mabilung Energy Limited (MEL), founded in 2014 and transitioned to a public limited company in 2021, is in the process of developing a 4.95 MW run-of-river hydropower project located in Sankhuwasabha, Nepal. Initially estimated at NPR 937 million with a debt-to-equity ratio of 70:30, the project has faced budget overruns, with a new budget currently pending. As of mid-April 2024, MEL’s paid-up capital reaches NPR 197 million, wholly owned by the promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other pivotal stakeholders.
