KATHMANDU, April 12: Nepal Investment Bank Limited (NIB) has concluded its FPO allotment today at the Hotel Annapurna, Kathmandu at 9:30 AM.
Allotment for investors who had applied from Rs 6,010 or 10 units to Rs 12,020 or 20 unit shares were decided through a lottery and remaining investors who had applied for Rs 18,030 or 30units to Rs 48,080 or 80 units were allotted 32.5% on pro-rata basis. And the other investors applied for Rs 54,090 or 90 units to Rs 12,02,00,000 or 2 lakhs units were allotted 8.5% on pro rata basis. Investors of 90, 100 and 110 unit shares got lucky to get minimum 10 unit shares and not in lottery as only 8.5% shares fall in Other investors category.
Earlier, Nepal Investment Bank Limited (NIB) had issued 90,69,388 unit shares worth Rs 5.45 arba as a part of Further Public Offering (FPO) from Falgun 11 to Falgun 14 2072. The FPO was issued at Rs 601/unit.
Citizen Investment Trust (CIT) is the issue manager for the FPO of Nepal Investment Bank.
Investors applying Rs 50,000 or below per application form are classified as small investors and those applying above 50,000 are considered big investors.
Of the total 90,69,388 crore unit shares set aside for public, 40% or 36,27,755 shares, were put aside for retail investors and 60% or 54,41,633shares, under “other investor” category. Retail investors applied for a total of 11,164,490unit shares and those in the others category demanded 63,936,410 units.
The shares set aside for retail investors were oversubscribed by 3.08 times and those set aside under other category were oversubscribed by 11.75 times.
Of the total 2,18,794 applicants’ only 2,10,756 investors got the shares. There were only 332 invalid applicants including 75 such applicants which were rejected due to NIB promoter shareholder applicants.
The bank had issued FPO as per directive issued by the central bank to maintain at least 30% stake of public shareholders. Earlier, Promoter and ordinary shareholders’ share structure of the commercial bank stood at 80:20 ratio.
After the issuance of the FPO its paid up Capital has reached to the Rs 7.25 Arba. The reserve has increased by Rs 4.54 arba to Rs 9.11 arba. After the FPO, NIBL has the highest paid up capital among all the commercial banks other than state owned commercial banks.
NIBL has earned net profit of Rs 1.09 arba in second quarter of the current fiscal year 2072/73.
ICRA Nepal had assigned an “[ICRANP] IPO Grade 3+”, indicating average fundamentals of the proposed FPO amounting to NPR 5,341.42million of Nepal Investment Bank Limited.
Published on: Sharesansar (April 12, 2016)