Mega Bank Nepal to float ordinary shares for public from June 2

KATHMANDU, MAY 24:

Mega Bank Nepal — the 29th commercial bank — will hold its Initial Public Offering (IPO) from June 2.

The bank will be issuing ordinary shares worth Rs 699 million at a face value of Rs 100 per unit for the public. An investor can apply for a minimum of 50 units and to a maximum of 200,000 units. The shares will be allotted proportionately based on the total amount of applications received.

Mega will be the 30th commercial bank to be listed at Nepal Stock Exchange (Nepse). It has appointed Citizens Investment Trust, Nabil Investment, NIBL Capital and NMB Capital as issue managers for the IPO. It has already allotted 699,000 unit shares to mutual funds and bank employees.

Mega Bank Nepal, which started operations on September 2010, has a paid up capital of Rs 1.63 billion which will increase to Rs 2.33 billion after the shares are issued. It earned Rs 165.3 million in the third quarter of the current fiscal year.

Two months back, Commerz and Trust Bank Nepal’s IPO worth Rs 600 million was oversubscribed by 12 times the size. Likewise, Civil Bank’s IPO, held in December worth Rs 800 million, was oversubscribed by almost seven times as investors had applied for shares worth Rs 5.4 billion. Shares of Commerz and Trust Bank Nepal and Civil Bank are being traded at Rs 143 and Rs 150, respectively, at present, at Nepse.

Source: THT