Mithila IPO allotment on Feb 16, likely at 1.25% flat; up to Rs 76k may face lottery

ShareSansar, February 14:

The allotment of the Initial Public Offering (IPO) of Mithila Laghubitta Bikas Bank Limited, which closed on January 8, is taking place on February 16.

According to Civil Capital Limited, the issue manager, the allotment will take place at 4:00 PM at its office.

Similarly the allotment of the IPO of Century Commercial Bank will also take place later this month, most probably on March 3.

As Mithila’s IPO had been oversubscribed by 76.86 times, it is likely to be allotted flatly at 1.25 percent for both the small and other big investors.

“Those who had applied for the equity shares below Rs 76,000 are likely to fall under lottery,” an official with Civil Capital told ShareSansar.

The issuance of 70, 725 units of ordinary shares through the IPO that begun on January 5 had drawn Rs 54 crore, 36 lakh and 30 thousand, according to the final data handed over by Civil Capital Limited, the issue manager, to the Securities Board of Nepal (SEBON).

The issue manager maintains that the IPO would have drawn even more investors had it not come just ahead of Century Commercial Bank’s IPO.

The SEBON had approved Mithila’s IPO issuance on December 11.

As 1,415 unit shares were set aside for the staff of the microfinance and another 5 percent of the shares were earmarked for the mutual funds, the total ordinary shares floated to the public stood at 65,774.

Notably, refund from neither of the IPOs will be available for the IPO of Ridi Hydropower Development Company, which is opening on February 16.