Mabilung Energy Issuing IPO Shares to Locals of Sankhuwasabha District And Nepalese Employed Abroad From Ashad 22

Mabilung Energy Limited has published an offer letter to issue an Initial Public Offering (IPO) of 3,85,824 units of IPO shares to the project-affected locals of Sankhuwasabha District and 1,50,471 units of IPO Shares to Foreign Nepalese Immigrants.

The IPO issue for the locals and Nepalese citizens working abroad will open from the 22nd Ashad to the 4th Shrawan, 2082. Note that for the locals of Sankhuwasabha District, if the issue is not subscribed by the early closing date, the issue can be extended till Shrawan 19. However, the issue will not be extended to the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 38.58 Crores. Of this, 48.9998%, i.e., 18,90,530 unit shares, will be issued to the public. Out of the total issue capital, 10%, which amounts to 385,824 unit shares worth Rs. 3.85 Crores, will be allocated to project-affected locals of Sankhuwasabha district. The remaining 38.9998% of the issued capital, i.e., 15,04,706 unit shares, will be offered to the general public at a later date.

Of this general public issue, 10%, a total of 150,471 unit shares, have been set aside for Nepalese citizens working abroad, and the issue for this category will open on the date mentioned above.

For the project-affected locals and the Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 50,000 units.

LS Capital Limited has been appointed as the issue manager for the IPO issuance.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Mabilung Energy Limited. Issuers with this rating are considered to have a high risk of default regarding the timely servicing of financial obligations.

Mabilung Energy Limited (MEL), established in 2014 and converted to a public limited company in 2021, is developing a 4.95 MW run-of-river hydropower project in Sankhuwasabha, Nepal. The project, initially budgeted at NPR 937 million with a 70:30 debt-to-equity ratio, has encountered cost overruns, with a revised budget pending. As of mid-April 2024, MEL's paid-up capital stands at NPR 197 million, which is fully held by the promoters, including Asian Life Insurance, Guheswori Merchant Banking, and other key stakeholders.

Offer Letter