Global IME share auction: winners may or may not be entitled to dividend

ShareSansar, July 28:

Though the ongoing share auction of Global IME Bank is a good opportunity to get hold of the  ordinary share at an attractive price, what the bidders must also realize is that they may or may not be entitled to the dividend for the last fiscal year.

This is because the share auction has been announced in the new fiscal year and also because the shares being floated in the auction are not the listed ones.

“If the listing of these shares takes place before the book closure for the upcoming AGM then those who get hold the shares being auctioned now, they will be entitled to the dividend to be endorsed by the AGM,” Global IME’s company secretary Bishnu Baskota told ShareSansar today.


Global IME Bank Limited has opened bids 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.

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.

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.