Janata Bank allots shares, to list within this fiscal year

Janata Bank Nepal today alloted the shares it had floated about a month back and is planning to list the stocks at Nepal Stock Exchange (Nepse) before the fiscal year ends.

The bank allotted the shares to the applicants of its initial public offering (IPO) today based on Proportionate Allotment Guidelines of Securities Board of Nepal.

"We have already prepared the necessary procedures required to get listed and will be applying at Nepse soon and will be listed before the fiscal year ends," pointed out chief executive of Civil Capital — one of the three issue managers of the issue — Bhishma Raj Chalise.
The bank's shares will debut anywhere between Rs 100 to three times the net worth of the share. "We can expect the debut price of the shares to be fixed at anywhere between Rs 100 to Rs 300," he informed.
According to the financial statement of the bank, it has earned a net profit of Rs 43.7 million in the third quarter of the current fiscal year. In its two years of operations, the bank has collected deposits worth Rs 6.8 billion and floated loans worth Rs 6.6 billion.
According to Securities Issue Regulation, the bank will have to return the remaining amount of the money submitted by the applicants, as they have been alloted proportionately, within five days of the allotment.

The bank's IPO was oversubscribed by more than three times with applications for shares worth Rs 1.9 billion from 41,832 applicants.

Of the total shares, 40 per cent shares worth Rs 228 million –– 2.2 million unit shares –– were distributed to small investors who had applied for less than 500 units. Likewise, the remaining 3.4 million units were allotted to larger applicants who had applied for more than 500 units.

Opened from April 24 to May 4 Janata Bank's IPO was managed by three merchant bankers; Citizen Investment Trust, NMB Capital and Civil Capital.