Global IME floats FPO through share auction: lowest bid amount Rs 154

ShareSansar, July 27:

As reported by ShareSansar earlier this month, Global IME Bank Limited has finally decided to issue its Follow on Public Offer (FPO) of 3,49,594 unit shares through auction to maintain the mandatory public share holding of 30 percent.

Following its merger with Commerz and Trust Bank Limited, Global IME is 0.3 percent short of 30 percent public share holding.

Issuing a notice today, the commercial bank has stated that it has open bids for the auction to the public from today itself and the bids will close on August 3.

Bidders must quote more than Rs 153 per unit share, which means that the lowest bid amount must be Rs 154. Bidders must also bid for a minimum of 100 units, and the entire bid amount must be deposited in advance.

The auction is a good opportunity to get hold of Global IME Bank’s ordinary share at an attractive price since its last traded price was Rs 725.

Moreover, the commercial bank has just come up around twofold net profit rise, for the last two consecutive quarters.

Global IME Capital Limited is managing the auction.

According to sources at the commercial bank, they had applied with the Securities Board of Nepal (SEBON) last month to make the FPO through a share auction since its size is quite small.

Special General Meeting of the commercial bank held in Birgunj on June 2 had endorsed a proposal to this effect as part of the plan to ensure 30 percent of its stake to ordinary shareholders to maintain 70:30 ratio of public-ordinary share structure.
 
Global IME source further said that they wanted to float the FPO through a share auction also because issuing it like a public issue will be much lengthy process as the premium rate for the FPO has to be approved by a special general meeting.

Global IME’s share trading had resume from April 30 following its merger with Commerz and Trust Bank Nepal Limited.

The merger of the two commercial bank which was endorsed by both the banks’ Annual General Meeting in March makes Global IME one of the leading banks with the largest network of branches and ATMs in the private sector.

Global IME started the integrated business from April 9.