Bank of Kathmandu proposes price of Rs 310 for upcoming FPO of 61.58 lakh units; paid up to reach Rs 6.23 arba

Bank of Kathmandu Limited (BOKL) has proposed a per share price of Rs 310 for its upcoming FPO for promoters. As per the notice published in NEPSE today, it has proposed Rs 210 premium added to the face value of Rs 100 per unit for upcoming 61,58,067 units promoter shares. The whole issue is worth Rs 1.90 arba out of which Rs 61.58 crore will be added to the bank's paid up capital. The remaining Rs 1.29 arba will add to the bank's reserve. Nabil Investment Banking Limited has been assigned as the issue manager for this FPO. After the merger of Bank of Kathmandu and Lumbini Bank, the promoter ownership of the merged bank was reduced to 45.64%. BOKL is issuing further 61,58,067 units promoter shares to convert its promoter-public shareholding structure at 51:49. BOKL’s 22nd AGM conducted on March 22, 2017 had endorsed the agenda to issue FPO for promoter shares. After the issuance of 61.58 lakh units FPO shares for promoters, its paid up capital will reach Rs 6.23 arba with 51% promoter ownership and 49% general public ownership. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, BOKL will need to issue a further capital hike of around 29%. Existing promoters of BOKL and general public those who meet NRB’s eligiblity criteria for promoters are eligible to apply for the FPO.