Century Commercial Bank will be launching the last big public offering of a commercial bank from Thursday.
The bank will offer 9.2 million units of ordinary shares worth Rs 920 million for the public from January 9 at a face value of Rs 100 per unit. An investor can apply for a minimum of 50 unit shares and a maximum of one million units. The issue will close on January 13, at the soonest or on January 23 last if the shares are not fully subscribed by January 13.
The Initial Public Offering (IPO) of the 31st commercial bank in Nepal will be the last largest offering of the immediate future. With the secondary market already rallying upwards, Century Commercial Bank’s IPO is expected to see major participation from the public for it being the last chance to buy a commercial bank’s share at Rs 100.
Century Commercial Bank is the last class ‘A’ bank for the moment as the regulator — Nepal Rastra Bank — has stopped issuing operating licence to commercial banks for the time being. Moreover, the next big IPO — Upper Tamakoshi worth over Rs 2.5 billion — will be open only for the project affected locals and the staff of Nepal Electricity Authority and the project’s major stakeholders.
The bank’s offering is the
second largest IPO of any commercial bank and the largest among private banks. In 2010, Agricultural Development Bank Ltd had offered shares worth Rs 960 million.
However, the credit rating of the bank’s IPO is not very optimistic about the company’s fundamentals. Icra Nepal — Nepal’s only credit rating agency — has assigned an ‘[ICRANP] IPO Grade 4+’ to the bank’s IPO, indicating below-average fundamentals.
Following the IPO, the bank that has Rs 1.08 billion paid up capital will have a capital of Rs two billion, as per the regulatory requirement. The bank had appointed Citizen Investment Trust, Nabil Investment, Growmore Merchant, Civil Capital and NIDC Capital Market Ltd as sales and issue managers for the IPO back in May. The capital market regulator — Securities Board of Nepal — had approved the IPO last week.
The bank, promoted by 568 promoters, had started operations from March 2011. It has been operating through 31 branches, three branchless banking centres, and 12 ATMs across Nepal.
Of the total deposits, its market share stands at about 1.1 per cent and 1.2 per cent in terms of total loans as of the end of last fiscal year. The bank posted Rs 35 million operating profit in the first three months of the current fiscal year. It will be the 31st commercial bank to be listed at Nepal Stock Exchange.
The last three IPOs of commercial banks launched in the last fiscal year had witnessed overwhelming reception from the public. Civil Bank’s offering was oversubscribed by seven times, Commerz and Trust Bank’s IPO was oversubscribed by 11 times, while Mega Bank’s offering got oversubscribed by 22 times the size of offering.
source: the himalayan times,2 Jan 2014
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The bank will offer 9.2 million units of ordinary shares worth Rs 920 million for the public from January 9 at a face value of Rs 100 per unit. An investor can apply for a minimum of 50 unit shares and a maximum of one million units. The issue will close on January 13, at the soonest or on January 23 last if the shares are not fully subscribed by January 13.
The Initial Public Offering (IPO) of the 31st commercial bank in Nepal will be the last largest offering of the immediate future. With the secondary market already rallying upwards, Century Commercial Bank’s IPO is expected to see major participation from the public for it being the last chance to buy a commercial bank’s share at Rs 100.
Century Commercial Bank is the last class ‘A’ bank for the moment as the regulator — Nepal Rastra Bank — has stopped issuing operating licence to commercial banks for the time being. Moreover, the next big IPO — Upper Tamakoshi worth over Rs 2.5 billion — will be open only for the project affected locals and the staff of Nepal Electricity Authority and the project’s major stakeholders.
The bank’s offering is the
second largest IPO of any commercial bank and the largest among private banks. In 2010, Agricultural Development Bank Ltd had offered shares worth Rs 960 million.
However, the credit rating of the bank’s IPO is not very optimistic about the company’s fundamentals. Icra Nepal — Nepal’s only credit rating agency — has assigned an ‘[ICRANP] IPO Grade 4+’ to the bank’s IPO, indicating below-average fundamentals.
Following the IPO, the bank that has Rs 1.08 billion paid up capital will have a capital of Rs two billion, as per the regulatory requirement. The bank had appointed Citizen Investment Trust, Nabil Investment, Growmore Merchant, Civil Capital and NIDC Capital Market Ltd as sales and issue managers for the IPO back in May. The capital market regulator — Securities Board of Nepal — had approved the IPO last week.
The bank, promoted by 568 promoters, had started operations from March 2011. It has been operating through 31 branches, three branchless banking centres, and 12 ATMs across Nepal.
Of the total deposits, its market share stands at about 1.1 per cent and 1.2 per cent in terms of total loans as of the end of last fiscal year. The bank posted Rs 35 million operating profit in the first three months of the current fiscal year. It will be the 31st commercial bank to be listed at Nepal Stock Exchange.
The last three IPOs of commercial banks launched in the last fiscal year had witnessed overwhelming reception from the public. Civil Bank’s offering was oversubscribed by seven times, Commerz and Trust Bank’s IPO was oversubscribed by 11 times, while Mega Bank’s offering got oversubscribed by 22 times the size of offering.
source: the himalayan times,2 Jan 2014
LINK
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