Kathmandu, February 28:
Also, the sources further informed that those who applied for up to Rs 12,000 fall under lottery system.
According to the issue manager, they are planning to distribute the allotment slips and refund the non-allottees within five working days from the allotment (i.e. by March 9).
Century’s IPO was oversubscribed by 24.48 times.
The IPO, which was issued from January 9, had closed on January 13.
Century’s IPO was one of the most expected events in the stock market not just because of its sheer volume but also because it is the last IPO to be issued by any commercial bank of the country.
Nepal Rastra Bank has stopped issuing license to the commercial bank, and, on the contrary, has been directing the commercial banks and other BFIs to seek merger.
The offering was also special as it was the largest IPO to be issued by any private bank in the country, second only to primary shares worth Rs 96 crore floated by Agriculture Development Bank Limited.
ICRA Nepal had assigned an ‘[ICRANP] IPO Grade 4+’ to Century Bank’s IPO, which is not at all bad by any standards.
Following the IPO, the commercial bank’s paid-up capital of Rs 1.08 billion will rise to Rs two billion, as per the regulatory requirement.
The Initial Public Offering (IPO) worth Rs 92 crore issued by Century Commercial Bank Limited will be allotted on March 3 at the office of the commercial bank in Kathmandu, according to highly placed sources privy of the development.
The reliable sources also informed that the IPO allotment model is such that it will be allotted at an impressive 7.90 percent to retail investors who had applied up to Rs 50,000 and at just 3.09 percent to big investors.
This means that the smaller investors will be benefited more from the
allotment as has been the policy of the regulator and the key stakeholders in the market.
“The allotment model has been designed in such way also because there were more applicants who applied for more than Rs 50,000,”
The reliable sources also informed that the IPO allotment model is such that it will be allotted at an impressive 7.90 percent to retail investors who had applied up to Rs 50,000 and at just 3.09 percent to big investors.
This means that the smaller investors will be benefited more from the
allotment as has been the policy of the regulator and the key stakeholders in the market.
“The allotment model has been designed in such way also because there were more applicants who applied for more than Rs 50,000,”
“To explain with an example, those who had applied for Rs 50,000 will get 40 units of the shares while those who applied for, say, Rs 1 lakh will get just 32 units.”
Also, the sources further informed that those who applied for up to Rs 12,000 fall under lottery system.
According to the issue manager, they are planning to distribute the allotment slips and refund the non-allottees within five working days from the allotment (i.e. by March 9).
Century’s IPO was oversubscribed by 24.48 times.
The IPO, which was issued from January 9, had closed on January 13.
Century’s IPO was one of the most expected events in the stock market not just because of its sheer volume but also because it is the last IPO to be issued by any commercial bank of the country.
Nepal Rastra Bank has stopped issuing license to the commercial bank, and, on the contrary, has been directing the commercial banks and other BFIs to seek merger.
The offering was also special as it was the largest IPO to be issued by any private bank in the country, second only to primary shares worth Rs 96 crore floated by Agriculture Development Bank Limited.
ICRA Nepal had assigned an ‘[ICRANP] IPO Grade 4+’ to Century Bank’s IPO, which is not at all bad by any standards.
Following the IPO, the commercial bank’s paid-up capital of Rs 1.08 billion will rise to Rs two billion, as per the regulatory requirement.
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