Mabilung Energy Limited has initiated the launch of an Initial Public Offering (IPO) comprising 3,85,824 units of IPO shares designated for locals impacted by the project in Sankhuwasabha District and 1,50,471 units of IPO shares intended for Foreign Nepalese Immigrants. This offer opens today, 22nd Ashad, and will conclude on 4th Shrawan, 2082.
It is important to mention that for the residents of Sankhuwasabha District, the offer may be extended until Shrawan 19 in case of insufficient subscriptions by the early closing date. However, no extensions will be made for Nepalese citizens employed abroad as of the early closing date.
The company’s issued capital totals Rs. 38.58 Crores. Of this, 48.9998%, which translates to 18,90,530 unit shares, is earmarked for the public. Specifically, 10% of the total issued capital, equating to 385,824 unit shares valued at Rs. 3.85 Crores, will be reserved for the project-impacted locals of Sankhuwasabha district. The remaining 38.9998% of the issued capital, amounting to 15,04,706 unit shares, will be made available to the general public at a later stage.
Within this general public offering, 10%, totaling 150,471 unit shares, has been allocated for Nepalese citizens working abroad, and this particular offer begins today.
For the project-impacted locals and the Nepalese citizens living overseas, the minimum application size is set at 10 units, while the maximum limit is capped at 50,000 units.
LS Capital Limited has been designated as the issue manager for the IPO rollout.
ICRA Nepal has granted an issuer rating of [ICRANP-IR] B+ (articulated as ICRA NP issuer rating B plus) to Mabilung Energy Limited. Entities with this rating are viewed as having a considerable risk of default when it comes to timely financial obligations.
Mabilung Energy Limited (MEL), established in 2014 and transitioned into a public limited company in 2021, is actively developing a 4.95 MW run-of-river hydropower project in Sankhuwasabha, Nepal. Initially budgeted at NPR 937 million with a 70:30 ratio of debt to equity, the project has faced budget overruns, with a revised budget yet to be finalized. By mid-April 2024, MEL’s paid-up capital is recorded at NPR 197 million, entirely owned by its promoters, which include Asian Life Insurance, Guheswori Merchant Banking, and various key stakeholders.
