HIMALAYAN NEWS SERVICE
KATHMANDU: Janata Bank Nepal’s primary issue is expected to be oversubscribed by more than two and a half times. “Tentative calculation shows that collection centres have received applications worth Rs 1.5 billion for the ordinary shares by the fifth day,” pointed out Bhisma Raj Chalise, CEO of Civil Capital –– one of the three issue managers of the issue.
The issue was supposed to be open for four days but was extended by a day as it was not yet fully subscribed by the third day. “To publish the notice regarding issue closure we had to be sure that the issue was subscribed by the third day but by Wednesday, applications for shares worth only Rs 480 million were received so we had to extend by a day,” he informed.
Janata Bank’s Initial Public Offering (IPO) worth Rs 600 million opened on April 29 offering 60 million ordinary shares of the 27th commercial bank to the public. There was an overwhelming response from the public on the last day –– Friday –– as applications received were double the amount received in the first four days.
Janata Bank has to be listed at Nepse by July at a debut price not less than Rs 130 per unit share, according to Chalise. The issue is managed by Citizen Investment Trust, NMB Capital and Civil Capital.