Global IME starts issuing share certificates; trading expected in 10 days

ShareSansar, April 11:

Global IME Bank Limited has started distributing new share certificates to the shareholders from today following the merger of Commerz and Trust Bank Nepal Limited.

The share certificates of the merged entity can be collected from Elite Capital Limited at Jamal in Kathmandu, according to a notice issued by the bank today.

The share certificates can be collected from 10:00 AM to 2:00 PM Sunday through Thursday, and from 10:00 AM to 1:00 PM on Friday.

It may be noted that the Elite Capital has also been acquired by Global IME as its merchant banking wing and has been renamed Global IME Capital, though its original name is being retained for the time being for the obvious reason.

Meanwhile, the bank is planning to get its shares listed for trading by the first week of Baisakh i.e. in the next ten days, according to bank officials.

The shares of Global IME Bank Limited, which has entered into a merger with Commerz and Trust Bank Nepal Limited, is likely to be listed for trading in the first week of Baisakh, according to bank officials.

Back in March, Global IME’s company secretary Bishnu Baskota had told ShareSansar they were planning to resume the share trading in two weeks from the day the integrated trading begins.

If things go as per the plan – and there isn’t much space to doubt it won’t – Global IME’s shares will debut at Rs 430 as per the last traded price on November 10, and will most probably close at Rs 473 on the same day.

“The scrip will continue to rise steadily in the next few days and will be priced more than the share of NIC Asia,” said Narendra Sijapati, president of the Brokers’ Association.

Given the current situation, Global IME’s shares will hover around Rs 750 within a few days once it gets listed.

It may also be noted that the shareholders are further encouraged by the first and the second quarterly reports for the current fiscal year.

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

It now has more than 120 service network, including branches, branchless service and extension counters across the country and beyond, besides 80 ATM outlets that cater to 5 lakh customers.

Its capital base has also surged to Rs 6 arba and it now mobilizes Rs 49 arba in deposit and another Rs 49 arba in loan.

A special Annual General Meeting of Global IME Bank held on March 5 in Birgunj had endorsed the merger by ratifying Due Diligence Report and the swap ratio for the merger.

In December, Nepal Rastra Bank had formally endorsed the plan of Global IME Bank and Commerz and Trust Bank to merge.
 
The two commercial banks have seal a deal for the merger on November 10 at a swap ration of 100:65.

This is the second merger between the commercial banks in the country. The first commercial banks to merge were NIC and Bank of Asia.