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.

Nepal Infrastructure Bank gets operating licence

Nepal Infrastructure Bank has today received operating license as a National Level Infrastructure Development Bank from the central bank.
Nepal Infrastructure Bank has received operating license to conduct financial transaction as per the Banking and Financial Institution Act, 2073 clause 107, the bank said in a press note. "The bank is established in joint effort and investment by government along with various commercial banks, insurance companies, microfinance, private companies and group of business entrepreneurs of Nepal," it reads, adding that the bank – registered in the Office of Company Registrar on June 8, 2018 – has received operating licence from the Governor of Nepal Rastra Bank Dr Chiranjibi Nepal, as a national level Infrastructure Development Bank today.
The bank with authorised capital of Rs 40 billion, issued capital of Rs 20 billion and paid up capital Rs 12 billion has 10 per cent government share and 90 per cent share from private sector.
The prime objective of the bank is to play vital role in the infrastructure development of the nation more specifically in the area of construction and development of transportation, agriculture, energy, tourism, SEZ, advanced urbanisation infrastructure, information technology (IT) along with other areas of infrastructure, the press note reads, adding that the bank shall strive to bringing everyone together – public as well as private – in order to achieve its core objectives including infrastructure financing; sourcing of long term funds from international and domestic capital market; and investing on shares of the companies operating in Infrastructure development and other services offered by the bank.