Commerz and Trust Bank to float IPO on February 17

KATHMANDU, FEB 14:

Commerz and Trust Bank Nepal — the 29th commercial bank of the country — will be issuing its Initial Public Offering (IPO) from February 17.

The bank will be issuing ordinary shares worth Rs 600 million at a face value of Rs 100 per unit for the public, informed chief executive of the bank Anal Bhattarai, here today.

An investor can apply for a minimum of 50 units and to a maximum of 1,500,000 units. The shares will be allotted proportionately based on the total amount of applications received.

“Commerz and Trust Bank Nepal that started operations on September 20, 2010, with a paid up capital of Rs 1.40 billion will have a paid up capital of Rs two billion after the shares are issued,” he said, ensuring investors that they will get good returns as it has high efficiency with low cost of operation.

The bank has a deposit of Rs 9 billion and lent Rs 8.27 billion by the end of seventh month of the current fiscal year, he added.

Commerz and Trust Bank Nepal will be the 29th commercial bank to be listed at Nepal Stock Exchange (Nepse) after the shares are allotted. It has appointed Citizens Investment Trust, Nabil Investment, Growmore Merchant Banker, and Civil Capital as issue and sales managers for its primary issue.

Bank officials toured major cities — Birgunj, Biratnagar, Pokhara, Butwal and Dharan — across the country to hold interactions with potential investors and inform them of the bank’s primary shares.

The commercial bank has earned Rs 65 million in the second quarter of the current fiscal year.

Two months back Civil Bank’s IPO worth Rs 800 million was oversubscribed by almost seven per cent as investors had applied for shares worth Rs 5.4 billion. Likewise, Mega Bank and Century Commercial Bank will also be issuing shares to the public before the end of the current fiscal year.

Source: THT