CTBN to float ordinary shares from Feb 17

KATHMANDU, FEB 07: 

Commerz and Trust Bank Nepal (CTBN) will issue six million units of ordinary shares worth Rs 600 million at a face value of Rs 100 per unit from February 17 to February 21.

Of the total, some 300,000 units have been bought by Siddhartha Mutual Fund and Citizens Units, according to the capital market regulation. Likewise, some 300,000 unit shares will be for employees of the bank. The bank will allot the remaining 5,400,000 unit shares to the general public.

“Buying Commerz and Trust Bank’s share will be profitable for both short-term and long-term sustainable returns,” said chief executive of the bank Anal Raj Bhattarai.

The bank, with 13 branches, has low operating cost, he said, adding that it is planning to add three more branches, one each in Rolpa, Birgunj and Baneshwor of Kathmandu, soon. It posted a profit of Rs 65 million in the second quarter of the current fiscal year.

CTBN had recently held interactions with potential investors in Birgunj, Biratnagar, Pokhara, Butwal and Dharan to inform them of the bank’s primary shares. “We have received overwhelming response from potential investors,” Bhattarai added. “They are more aware of the primary issues and bank’s financials, which is a good sign for the progress of the capital market.”

An investor can apply for a minimum of 50 unit shares and to a maximum of 1,500,000 units, but the bank will distribute shares proportionately on the basis of the total amount of applications received, according to the new regulation.

Commerz and Trust Bank Nepal, which started operations on September 20, 2010, with a paid up capital of Rs 1.40 billion — as the 29th commercial bank of the country — will have a paid up capital of Rs two billion after the shares are issued.

The market will see Mega Bank and Century Commercial Bank’s primary issue after Commerz and Trust Bank Nepal that will be listed as the 29th commercial bank at Nepse after its shares are allotted to the public.

Source: THT