Mabilung Energy Limited IPO Approved by SEBON
The Securities Board of Nepal (SEBON) has approved the Initial Public Offering (IPO) application of Mabilung Energy Limited. The approval was issued on 1st Ashadh, 2082.
The company will issue a total of 1,890,530 shares to the general public at a par value of Rs. 100 per unit, which accounts for 48.9998% of its total issued capital. The company has appointed the Laxmi Sunrise Capital Limited as the issue manager for this public offering. 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.
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) was established in 2014 and converted to a public limited company in 2021. It is currently 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.