Aviyan Laghubitta (AVI) Closing IPO Issue Today; IPO Already Oversubscribed by 16.78 Times

Aviyan Laghubitta Bittiya Sanstha Limited (AVI) is closing the issue of 9,75,000 units worth Rs. 9.75 crores as Initial Public Offering to the general public from today i.e. 22nd Shrawan. This IPO issue was opened on Shrawan 18, 2079.

Out of the offered 9,75,000 units; 0.5% of the total capital i.e. 12,500 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 48,750 units have been set aside for the mutual funds. The remaining 9,13,750 units are for the general public. This is the 39% shares of the issued capital. The total capital after the IPO will be Rs 25 crore of the company.

Applications can be placed for a minimum of 10 units and a maximum of 3000 units. Muktinath Capital Limited has been appointed as the issue manager for the IPO issuance.

According to CDSC, 14,30,406 applicants have applied for a total of 1,63,66,620 units. Thus, the issue has already been oversubscribed over 16.78 times so far.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP Issuer Rating Double B minus) to Aviyan Laghubitta Bittiya Sanstha Limited (ALBSL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations.

Incorporated in April 2019, the company started its operation in November 2019 as a licenced national level class D microfinance institution. ALBSL is promoted by two commercial banks (Mega Bank and Kumari Bank Limited with holdings of ~16.4% each) and 246 individual promoters. Mr. Laxmishwor Devkota is the Chief Executive Officer of the company. The registered and corporate office of ALBSL is in Panauti-5 Kavre, Nepal.

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