The public oversubscribed the primary issue of Century Commercial Bank by more than 22 times the offered amount.
“The final tally of the bank’s Initial Public Offering (IPO) applications show about 150,000 applicants applied for the ordinary shares worth Rs 20.95 billion,” said issue manager — Citizens Investment Trust (CIT)’s head of merchant banking unit Narayan Ghimire.
The 31st commercial bank in Nepal had offered 9.2 million units of ordinary shares worth Rs 920 million for the public at a face value of Rs 100 per unit. The issue is managed by CIT along with Nabil Investment, Growmore Merchant, Civil Capital and NIDC Capital Market.
The IPO opened on January 9 and closed on January 13. However, the overwhelming subscription had kept the issue manager counting the applications for three more days. “Even if the cheques deposited by the applicants bounce, we can safely assume the issue to be oversubscribed by 22 times,” pointed out Ghimire.
Until Sunday — January 12 — the public had applied for shares worth Rs eight billion, while the IPO witnessed applications worth Rs 13 billion on the last day.
The past 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, that of Commerz and Trust Bank by 11 times, while Mega Bank’s offering got oversubscribed by 22 times the size of the offering.
Though credit rating agency — Icra Nepal — had assigned an ‘[ICRANP] IPO Grade 4+’ to Century Commercial Bank’s IPO, indicating below-average fundamentals, the subscription rate was encouraging.
The bullish secondary market has attracted hordes of investors to the primary issue, as they can purchase the shares at a face value and trade it in the stock market at a higher price in less than two months.
Moreover, Century’s IPO is going to be the last big IPO for the time being since it is the last commercial bank required to go public.
The next big IPO will be of Upper Tamakoshi Hydropower Company. However, it will not be launched for the general public within next year.
Furthermore, with the Securities Board of Nepal amending regulations to simplify issuance of shares at a premium rate for all types of companies, firms probably will not be floating shares at face value in the future.
source: the himalayan times,16 jan 2014
LINK
“The final tally of the bank’s Initial Public Offering (IPO) applications show about 150,000 applicants applied for the ordinary shares worth Rs 20.95 billion,” said issue manager — Citizens Investment Trust (CIT)’s head of merchant banking unit Narayan Ghimire.
The 31st commercial bank in Nepal had offered 9.2 million units of ordinary shares worth Rs 920 million for the public at a face value of Rs 100 per unit. The issue is managed by CIT along with Nabil Investment, Growmore Merchant, Civil Capital and NIDC Capital Market.
The IPO opened on January 9 and closed on January 13. However, the overwhelming subscription had kept the issue manager counting the applications for three more days. “Even if the cheques deposited by the applicants bounce, we can safely assume the issue to be oversubscribed by 22 times,” pointed out Ghimire.
Until Sunday — January 12 — the public had applied for shares worth Rs eight billion, while the IPO witnessed applications worth Rs 13 billion on the last day.
The past 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, that of Commerz and Trust Bank by 11 times, while Mega Bank’s offering got oversubscribed by 22 times the size of the offering.
Though credit rating agency — Icra Nepal — had assigned an ‘[ICRANP] IPO Grade 4+’ to Century Commercial Bank’s IPO, indicating below-average fundamentals, the subscription rate was encouraging.
The bullish secondary market has attracted hordes of investors to the primary issue, as they can purchase the shares at a face value and trade it in the stock market at a higher price in less than two months.
Moreover, Century’s IPO is going to be the last big IPO for the time being since it is the last commercial bank required to go public.
The next big IPO will be of Upper Tamakoshi Hydropower Company. However, it will not be launched for the general public within next year.
Furthermore, with the Securities Board of Nepal amending regulations to simplify issuance of shares at a premium rate for all types of companies, firms probably will not be floating shares at face value in the future.
source: the himalayan times,16 jan 2014
LINK
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