Janata Bank IPO Share listing by mid-July

KATHMANDU, MAY 10: 

If everything goes as planned by the issue managers, Janata Bank Nepal’s primary shares will be listed by mid-July.

“We are trying to distribute and allot the shares within a month,” informed chief executive of Civil Capital — one of the three issue managers — Bhisma Raj Chalise. Applicants of Janata’s initial public offering will be able to get back their money for shares that are not allotted to them by the last week of June. “So shares can be listed before the end of the current fiscal year.”

According to the changed regulation, primary shares must be alloted in a proportionate manner ensuring that all applicants receive a share, even if they are not able to receive the total number that they have applied for.

The issue, worth Rs 600 million, received applications worth Rs 1.96 billion from 40,000 applicants. According to Securities Issue Regulation, the issue managers need to distribute and allot shares to the public within 40 days of closing the issue, if the number of applicants does not cross 100,000. “Only 40,000 applicants applied for the primary shares,” he said, adding that they — the three issue managers Citizen Investment Trust, NMB Capital and Civil Capital — are planning to allot the shares within a month. The applicants will get the remaining money — after the proportionate distribution — within five days of the allotment, according to the rule.

If everything goes according to issue managers’ plan, applicants will get their remaining amount by June 10, as they are planning to allot shares by June 4.

Source: THT