Tuesday, January 19, 2021

Biggest IPO closes with highest volume of applicants

Nepal Infrastructure Bank has closed its primary shares issue – biggest public offering in the history of domestic capital market – from today with the largest applications for the Initial Public Offering (IPO).

NIBL Ace Capital – the issue manager for the IPO issuance and Citizen Investment Trust (CIT) – confirmed the closing of the largest primary share offerings from today. According to the issue manager, in total 15,12,823 applicants have applied for 17,99,31,410 units of shares. “The number might be a little more after the final calculations.”  

After the IPO issuance, the bank’s paid-up capital will be Rs 20 billion from the existing Rs 12 billion. The bank has issued some 8,00,00,000 units worth Rs 8 billion as IPO to the general public from Jan 15.

Out of the offered 8,00,00,000 units, some 0.20 per cent of the shares or 1,60,000 units have been set aside for the employees of the bank and 5 per cent or 40,00,000 units have been set aside for the mutual funds. The remaining 7,58,40,000 units are for the general public, according to the issue manager.

The second annual general meeting of the bank had endorsed and approved the issuance of IPO. The bank established to serve and benefit from investment in significant infrastructure projects like hydropower projects, road infrastructures, was though the largest in terms of paid up capital when it was established, some other commercial banks have also reached around Rs 20 billion paid up capital as of today, making it look smaller.

Nepal Infrastructure Bank's profit declined by 12.43 per cent to Rs 181 million in the first quarter of the current fiscal year 2020-21. The bank’s annualised earning per share stands at Rs 6 and net worth per share stands at Rs 115.

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