Janata allots shares, listing in two weeks

KATHMANDU, JUNE 7: 

Janata Bank Nepal today allotted the hares it had floated about a month back and is planning to list the stocks at Nepal Stock Exchange (Nepse) before the year ends.

The bank allotted the shares to the applicants of its initial public offering (IPO) today based on Proportionate Allotment Guidelines of Securities Board of Nepal. “We have already prepared the necessary procedures required to get listed and will be applying at Nepse soon and will be listed before the fiscal year ends,” pointed out chief executive of Civil Capital — one of the three issue managers of the issue — Bhishma Raj Chalise. 

Janata’s shares will debut anywhere between Rs 100 to three times its net worth. “We can expect the debut price of the shares to be fixed at anywhere between Rs 100 to Rs 300,” he said.

According to Securities Issue Regulation, the bank will have to return the remaining amount of the money submitted by the applicants, as they have been allotted proportionately, within five days of the allotment. The bank’s IPO was oversubscribed by more than three times with applications for shares worth Rs 1.9 billion from 41,832 applicants.

Of the total shares, 40 per cent shares worth Rs 228 million –– 2.2 million unit shares –– were distributed to small investors who had applied for less than 500 units. Likewise, remaining 3.4 million units were allotted to larger applicants who had applied for more than 500 units. Opened from April 24 to May 4 Janata’s IPO was managed by Citizen Investment Trust, NMB Capital and Civil Capital.

Source: THT