Mabilung Energy Limited has released a proposal letter to initiate an Initial Public Offering (IPO) of 3,85,824 units of IPO shares to the local residents affected by the project in Sankhuwasabha District and 1,50,471 units of IPO shares for Overseas Nepali Citizens.
The IPO opportunity for the local populace and Nepali nationals employed abroad will commence from the 22nd Ashad to the 4th Shrawan, 2082. It’s important to note that for the residents of Sankhuwasabha District, should the offering not be fully subscribed by the final date, it may be extended until Shrawan 19. However, this extension will not apply to Nepali citizens working overseas.
The company’s issued capital amounts to Rs. 38.58 Crores. Of this, 48.9998%, equating to 18,90,530 unit shares, will be allocated to the general public. From the total issued capital, 10%, which equals 385,824 unit shares worth Rs. 3.85 Crores, will be reserved for locals affected by the project in Sankhuwasabha District. The remaining 38.9998% of the issued capital, or 15,04,706 unit shares, will be presented to the general public at a later date.
Within this public offering, 10%, totaling 150,471 unit shares, has been earmarked for Nepali citizens working abroad, with applications for this group opening on the specified dates mentioned above.
For the locals impacted by the project and Nepali citizens working overseas, the minimum quantity of units to apply for is 10, while the maximum limit is set at 50,000 units.
LS Capital Limited has been designated as the management firm for the IPO process.
ICRA Nepal has awarded an issuer rating of [ICRANP-IR] B+ (articulated as ICRA NP issuer rating B plus) to Mabilung Energy Limited. This rating indicates that the issuers are assessed to have a significant risk of default in meeting their financial obligations in a timely manner.
Mabilung Energy Limited (MEL), founded in 2014 and transformed into a public limited entity in 2021, is working on a 4.95 MW run-of-river hydropower project in Sankhuwasabha, Nepal. The project, originally estimated at NPR 937 million with a debt-to-equity ratio of 70:30, has faced increased costs, and a revised budget is awaiting confirmation. As of mid-April 2024, MEL’s paid-up capital is reported to be NPR 197 million, which is completely owned by the promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other vital stakeholders.
