Standard Chartered Bank’s 25.58 lakh units FPO approved by SEBON at Rs 1,290 per share; likely to float after NLIC FPO refund

Securities Board of Nepal (SEBON) has approved the further public offering (FPO) of Standard Chartered Bank Nepal Limited at Rs 1,290 per unit. SCB is coming out with 2,558,140 units FPO shares worth Rs 3.30 arba with Rs 1,190 premium added to the par value of Rs 100. NMB Capital Limited has been appointed as the issue manager of the FPO. Standard Chartered Bank’s paid up capital after the capitalization of bonus shares of FY 2072/73 (@33.33%) stands at Rs 3.75 arba. Capitalization of the proposed 25.58 lakh units FPO shares increases the paid up capital to around Rs 4 arba. As per the bank, the premium collected from the FPO (premium of Rs 1,190 per unit) will be used to distribute dividend for the FY 2073/74. As such, Rs 3.044 arba is seen to be collected as premium and distributed to its shareholders. Overall, Standard Chartered Bank will need to provide bonus share worth around Rs. 4 arba (100%) after the FPO to comply with the NRB’s directive to hike its paid up capital to a minimum of Rs 8 arba. The issue will likely be floated soon after investors are refunded their money from FPO of Nepal Life Insurance Company and Forward Community Microfinance IPO.