Mithila Laghubitta IPO opens today

ShareSansar, January 5:

Mithila Laghubitta Bikas Bank Limited is issuing 70, 725 units of ordinary shares through its Initial Public Offering (IPO) from today.

The issuance of the primary shares will close on Wednesday, January 8, according to the microfinance development bank.

The Securities Board of Nepal (SEBON) had approved the IPO issuance on December 11.

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

And as with all the recent IPOs of microfinance development bank it is likely to be hugely oversubscribed – by almost 200 times, according to the issue manager.

Civil Capital Limited is the issue manager.

Going by the overwhelming response to the primary shares of microfinance development banks over the recent weeks, the issue manager believes that Mithila’s IPO will also be hugely oversubscribed.

Breaking all the records of the past, the Initial Public Offering (IPO) of 42,900 unit equity shares of Rs 100 face value floated by Nagbeli Laghubitta Bikas Bank Limted, which closed on Wednesday, has attracted around Rs 1 arba.

“We believe that Mithila’s IPO will also be oversubscribed by around 200 times as the microfinance development bank is fundamentally impressive,” CEO of Civil Capital Bhisma Raj Chalise told ShareSansar.

He also informed that Siddhartha Capital Limited, one of the only two existing mutual fund operators in the country, has already subscribed to 3,536 units of Mithila’s primary shares.