Mega IPO Savings Account launched

KATHMANDU, MAR 15 -

Mega Bank has launched Mega IPO Savings Account as a prelude to its initial public offering (IPO) to make it convenient for potential subscribers to deposit their application money. The bank has applied to the Securities Board of Nepal for its approval to make an IPO worth Rs 699 million. It expects to be able to issue ordinary shares in April-May.

“As share applicants have to stand in line for hours to submit their forms during IPOs, we have tried to eliminate this hassle by allowing them to apply by using this savings account,” said Mega Bank ’s chief executive officer Anil Shah. “This will also definitely help us to expand our deposit base with a larger number of people opening accounts with us.”

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, we have fixed the minimum balance at Rs 5,000,” added Shah.

Mega Bank said that those who are allotted shares in the IPO can withdraw the money remaining in the account after paying for the shares. Dividends that may be distributed by the bank in the future will also be paid into the account.

Account holders will get a cheque book, SCT debit card, free online banking facility, on demand account statement, and free any branch banking service, said the bank.

Source: The Kathmandu Post