Jyoti Bikas Bank to float ordinary shares

Jyoti Bikas Bank is floating 2.92 million-unit of ordinary shares to public at the face value of Rs 100 per unit from August 16.
The development bank that has Rs 740 million authorised capital will also have Rs 740 million issued capital after this Initial Public Offerings (IPOs) worth Rs 292 million. "The promoters have already paid their shares of Rs 448 million," said the bank that has projected Rs 16.50 million profit in the fiscal year 2009-10.
According to the issue manager, Ace Development Bank, the issue will close on August 19 at the earliest, if the shares are oversubscribed. After the allotement of these ordinary shares, it will be listed at the secondary market.
Currently, 40 development banks' 88.49 million-unit of shares worth Rs 8.84 billion -- except promoters shares -- are listed at the Nespe. Similarly, Nepse has listed 325.16 million-unit shares of 23 commercial banks, 116.73 million-unit shares of 62 finance companies worth Rs 11,673.25 million and 30.49 million-unit of 19 insurance companies worth Rs 3049.27 million.
Development Banks' group is one of the key market propeller in the secondary market that is dominated by the financial institutions including commercial banks, development banks and finance companies apart from the insurance companies. Their trading contributes above 85 per cent of the total shares trading at the Nepse.
Meanwhile, led by banking and others groups, the Nepse gained 1.42 points to 459.83 points on the first day of the trading at the domestic market. The bankins group surged by 1.46 points to 434.98 points and others group gained 5.87 points to 552.22 points due to Nepal Telecom (NT) that witnessed Rs 5 gain in its per unit shares today.
Encouraged by 30 per cent cash and 30 per cent stock didivend Everest Bank gained Rs 60 per unit of its shares, whereas Standard Chartered Bank Nepal also gained Rs 55 per unit share to push the banking sector upwards.