Mega Bank to IPO in June first week

Tue, May 21, 2013 12:00 AM on IPO/FPO News,
Mega Bank...

KATHMANDU, MAY 21 -

Mega Bank is all set to make its initial public offering (IPO) in the first week of June. It received the go-ahead from the Securities Board of Nepal (Sebon) on Thursday, and plans to offer ordinary shares worth Rs 699 million to the public.  

Mega Bank ’s chief executive officer Anil Shah said they would allocate 5 percent of the total share offering to mutual funds, another 5 percent to the bank’s employees and the rest to the general public. The share allocation for the public worth Rs 629.1 million is equivalent to around 27 percent of the bank’s paid-up capital of Rs 233 million.

Mega Bank has appointed Citizen Investment Trust, Nabil Investment, NMB Capital and NIBL Capital Market as the sales and issue managers. As of mid-April, the bank has collected deposits of Rs 12.84 billion while it has provided loans worth Rs 11.61 billion. Shah expressed the hope that the share issue would be able to attract a large number of investors.

Recently, Mega launched the Mega IPO Savings Account as a prelude to its IPO to make it convenient for potential subscribers to deposit their application money. The bank offers 6 percent annual interest which is payable quarterly. The account can be opened with a minimum balance of Rs 5,000. As subscribers have to apply for at least 50 shares, the bank has fixed the minimum balance at Rs 5,000.

The bank has 1,229 promoters whose total investment amounts Rs 1.63 billion. It offers branchless banking facilities at 45 locations while it maintains 29 branch offices across the country.

Source: The Kathmandu Post