Last Day to Apply for Mabilung Energy Limited’s IPO

Today (August 14) is the final day to apply for Mabilung Energy Limited’s IPO, which opened to the public on August 10. Earlier, the company had issued shares to locals of the project-affected areas and Nepalis working abroad, and allocation for those categories has already been completed.

The company received approval to issue a total of 1,890,530 shares worth NPR 189,053,000, equivalent to 48.9998% of its issued capital of NPR 385,824,000. In the first phase, 385,824 shares were allocated to locals of the project-affected areas and 150,471 shares to Nepalis working abroad. In the second phase, the company issued 1,354,235 shares, of which 30,095 shares were reserved for employees and 75,236 shares for mutual funds. The remaining 1,248,904 shares are available for the general public.

Investors can apply for a minimum of 10 shares and a maximum of 50,000 shares. ICRA Nepal has assigned the company an “[ICRANP] IPO Grade Single B Plus,” indicating an average capacity to meet financial obligations and a moderate level of risk.

The company operates the 4.95 MW Upper Piluwa Khola–3 Hydropower Project, which has a total estimated cost of NPR 1.136 billion, with a per-MW cost of NPR 229.5 million. The project license has 31 years remaining. The simple payback period is estimated at 9.43 years, while the discounted payback period is estimated at 17.09 years.

The issue manager for the IPO is Laxmi Sunrise Capital Limited. Applications can be submitted through all C-ASBA member banks and financial institutions approved by the Securities Board of Nepal (SEBON) and their designated branches.