Mabilung Energy to Sell 18,90,540 Shares in IPO | Submits Application to SEBON

October 12, 2023 | Investopaper

Mabilung Energy Limited is in the process of issuing shares to the general public (IPO). For this purpose, the company has submitted the application to the Securities Board Of Nepal (SEBON) on Ashwin 14, 2080 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.

If approved by SEBON, the company will sell 18,90,530 shares in the initial public offering (IPO). At a par value of Rs. 100, the public issue amounts to Rs. 18.90 crores.

The company has appointed Laxmi Capital Market Limited as the issue and sales manager for the IPO. An agreement has been reached between the company and Laxmi Capital on this regard. The agreement was signed by Devin Shrestha, Director Of Mabilung Energy and Rajiv Sapkota, Chief Executive Officer of Laxmi Capital Markets Limited.

In the first phase, the company will issue shares to the locals of the project affected areas and foreign employed Nepalese. Likewise, in the second phase, the hydropower will float shares to the general public, including the employees of the company and the mutual fund schemes.

About Mabilung Energy Limited

Mabilung Energy Limited was established in 2014 as a private limited company. Later on July 2, 2021 it was transformed into a public company in order to issue shares to the general public.

The company is currently developing Upper Piluwakhola-3 hydropower project in Sankhuwasabha district. The project is a run-off-river (ROR) type project with an installed capacity of 4.95 MW.

The company is mainly promoted by Asian life Insurance Company Ltd. (about 32 percent share), Guheswori Merchant Banking and Finance Ltd. (about 19 percent share), and Trust Energy Private Ltd. (about 10 percent share).

The estimated cost of the project is Rs. 93.70 crores which translates into per MW cost of Rs. 18.93 crores. The project is being funded in a debt-equity ratio of 70:30.


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