Civil Bank’s primary issue oversubscribed by over seven times

Civil Bank's initial public offering (IPO) has been oversubscribed by 7.31 times.

The 30th commercial bank's primary shares worth Rs 800 million that opened on December 10, closed today, "with demand worth Rs 5.46 billion," said chief executive of the bank Kishore Maharjan.

The shares will be allocated within 45 days, he added.

Despite the prolonged political transition that has discouraged investors, the bank witnessed an encouraging demand, Maharjan said, adding that it will take time to calculate the final figure.

Civil Bank — that has Ichhya Raj Tamang as chairman of the board of directors — will now be the 28th commercial bank to be listed at the secondary market, once the bank allots its shares to the public within a month-and-a-half.

After the capital market regulator amended the allotment regulation, all the applicants will get shares on a proportionate basis.

The bank has offered eight million units of ordinary shares — including for its staff and Mutual Fund — at a face value of Rs 100 for the public.

Citizens Investment Trust, Nabil Investment, NCM Merchant Banking, and Ace Capital were the issue managers of the bank's primary issue that is the largest among private sector banks and second largest among all the banks after Agriculture Development Bank that had floated primary issues worth Rs 960 million.

Civil had earned a net profit of Rs 22.7 million in the last fiscal year with deposit mobilisation of Rs 9.5 billion and loan disbursement of Rs 11 billion.

The bank — that has completed its second year of operation – is providing services through 18 branches and has set a target to expand its network to 22 branches within this fiscal year.

Currently, more than 510 million unit shares of 27 commercial banks, with a total paid up value of over Rs 51.07 billion, are listed at Nepal Stock Exchange that is dominated by banks and financial institutions.