NMB Bank’s 1.14 crore units FPO shares at the final stage in SEBON pipeline for approval

NMB Bank Limited (NMB) has entered the final stage in the Securities Board of Nepal (SEBON)’s Further Public Offering (FPO) pipeline for approval. NMB had been first added in the Securities Board of Nepal (SEBON)’s Further Public Offering (FPO) pipeline to seek approval for the issuance of 1.14 crore units FPO shares on Jestha 22, 2074. NMB Bank will be issuing 11,415,163 units shares as a part of its Further Public Offering (FPO) at a premium price. The premium price for the FPO price has not been made public by the company. Citizen Investment Trust has been appointed as the issue manager for the FPO. The decision to float FPO comes after its 21^stAGM held on Poush 24, 2073 endorsed capital increment through FPO. NMB Bank has entered the billionaire’s club in the second quarter of the ongoing fiscal year 2074/75 by earning the net profit of Rs 1.007 arba. Its paid up capital currently stands at Rs 6.46 arba with Rs 5.23 arba in reserve. After this FPO of 1.14 crore units, the bank’s paid up capital will reach Rs 7.60 arba. In the first quarter of the previous fiscal year 2073/74, the bank had issued further promoter shares to its joint venture partner (FMO Netherlands) at Rs 250 per share. This upped FMO’s stake in the bank from 3% to 20% and the overall promoter stake to 60.01%. However, according to an official in NMB Bank, the bank’s public ownership will be increased to 49% from the current 39.99% and its promoter ownership will be diluted to 51% from current 60.01% after the FPO issue. Also, the stake of its joint venture partner (FMO Netherlands) will be diluted from 20% to 17%. The official also informed that the pending AGM for the last fiscal year is most likely to be convened after the FPO issue. However, the Board of Directors is yet to make a decision on the same. The bank will be short on the capital requirement of Rs 8 arba even after the FPO issue on which the official informed that most probably bonus shares shall be issued to meet the capital requirement. However, the Board of Directors of the company is yet to make a decision. On questioning about the bank’s FPO being in SEBON’s pipeline for more than 8 months, Mr. Niranjaya Ghimire, the Deputy Spokesperson of SEBON informed that it was due to some documents being incomplete, however, since the documents have been received now, the applied FPO is in final stage and will soon be issued in the market.