Century to distribute IPO certificates from next week; likely to be listed by mid-May

ShareSansar, April 17:

Century Commercial Bank Limited will start distributing its primary share certificates from next week, according to Civil Capital, which is managing the IPO.

“Since more than 151 thousand share certificates had to be manually signed by Century’s company secretary and a director, the process took a little more time than usual,” Civil Capital’s CEO Bhisma Raj Chalise told ShareSansar today.

He further informed that they have already applied with the SEBON for the approval to list the shares, and are planning to get the shares listed within Baisakh.

After allotting the Initial Public Offering (IPO) worth Rs 92 crore, Century had started distributing allotment slips and refund the non-allottees in March.

The IPO was allotted on March 4 at the head office of the commercial bank in Kathmandu at 7.90 percent to retail investors who had applied up to Rs 50,000 and 3.09 percent to big investors.

However, those who had applied for up to Rs 12,000 had fallen under lottery.
The IPO, which was issued from January 9 to January 13, was oversubscribed by 24.48 times.

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 in that 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.

Civil Bank's new share certificates from Sunday

Meanwhile, Civil Capital has informed that they will start distributing new share certificates for Civil Bank from Sunday.
 
Civil Bank Limited, which finalized the merger with Civil Merchant Bittiya Sanstha and Axis Development Bank Limited earlier this month through special AGM, has started the integrated business of the merged entity from Baisakh 1.

A senior official with the bank told ShareSansar that the merged Class ‘A’ bank, which has retained the name ‘Civil Bank Limited’ will expedite the process to resume the share trading at the earliest.

“The trading will most probably resume within a month,” he said.

It may be noted that Nepal Stock Exchange Limited (NEPSE) has suspended the trading of shares of all three BFIs in the merger process in October.

The separately held special AGMs of the three BFIs earlier this month had given the final nod to the swap ratio of 1:0.79 for the commercial and the other two BFIs following the DDA.