Mega Bank Nepal has allotted its ordinary shares to the public. The bank distributed 6.99 million units of ordinary shares to 144,456 subscribers today. Following the allotment, Mega Bank now has the highest number of shareholders. It already has 1219 promoters.
Small investors have been allotted 6.31 per cent of the shares applied by them. Likewise, large investors have been allotted 3.67 per cent of the shares applied by them. Of the total, 2.53 million units have been distributed to small investors who had applied for less than 500 shares, and 3.6 million units have been allotted to big investors who had applied for more than 500 shares.
However, due to excessive subscription, the bank resorted to a lottery system to allot shares to investors who had applied for 50 to 150 units. Among 35,402 applications that fell in the category, only half were allotted shares as regulation requires a minimum of 10 units to be allotted.
“The massive amount of subscription reflects the trust that public has in our bank,” said CEO Anil Keshary Shah, adding small investors have the capital to invest in larger infrastructure projects as well.
The Initial Public Offering, managed by Citizen Investment Trust, Nabil Investment Banking, NMB Capital and NIBL Capital Markets, had offered ordinary shares worth Rs 699 million at a face value of Rs 100 per unit for the public from June 2 to 5. The bank received 160,524 applications and the issue received subscription worth Rs 14 billion which is 22 times higher than the size of the offering.
The bank earned a net profit of Rs 130 million in the third quarter end and has collected deposits worth Rs 12.84 billion and has a total loan portfolio of Rs 11.87 billion as of the third quarter end.
Mega Bank Nepal that started operations on July 23, 2010, is providing services through 28 branches and 45 branchless banking outlets across the country.
src THT
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