Mega Bank IPO oversubscribed by 15 times

KATHMANDU, June 6:

Mega Bank´s initial public offering (IPO) is said to have been oversubscribed by around 15 times, making it one of the most successful public floatations in the recent history of Nepal.

The bank, which floated its shares on the primary market on Sunday, had raised Rs 6.33 billion till Tuesday evening, recording oversubscription of around 10 times. “We estimate the IPO to have been oversubscribed by 15 times as of Wednesday evening (the last day for public floatation), raising close to Rs 9.5 billion,” Mega Bank CEO Anil Keshary Shah told Republica. “But final results will come only tomorrow (Thursday).”

The bank had floated 6.99 million units of common stocks worth Rs 100 each. It had appointed Citizens Investment Trust, Nabil Investment Banking Limited, NMB Capital Limited and NIBL Capital Markets Limited as issue managers for the IPO.

The bank had established 133 collection centers in 40 districts from where people could file application to purchase shares of Mega.
Earlier, Mega had said the IPO would be a barometer to measure the trust and confidence of the public won by the bank since its establishment in July 2010.

“We are pleased to know that we have been able to win public´s confidence in a very short period of time,” Shah said.
He further added that share allotment process would complete within this fiscal year and extra funds raised through the IPO would be refunded within first two weeks of the start of the new fiscal year in mid-July.

Source: Republica