It has asked for sealed quotations from interested investors from September 16 to 24. Interested investors can bid for a minimum of 10 units of shares at a price higher than Rs 100 per unit.
Investors can bid for the shares quoting the amount of shares to be bought and the price per unit they are willing to pay in a sealed tender document and submit it to Civil Capital Market Ltd — the issue manager.
“Since this being an auction, the bank will allot the shares based on higher quoted price,” according to the press release of the bank. However, a single bidder cannot place multiple bids.
Nepal Bank’s shares are currently being traded at around Rs 160 at Nepal Stock Exchange (Nepse). The bank’s Earning
Per Share (EPS) stands at Rs 208.08 but its net worth is still negative, according to its fourth quarter financials.
The government owns 38.6 per cent stake in the bank while the rest of the stake is owned by the general public, different companies and the bank’s employees.
NBL had launched its rights issue for 36.1 million units at 1:9.5 ratio from May 23 to July 11 for its shareholders. The issue was supposed to close by June 26, however, the bank and rights issue managers postponed the closure date to July 11 as the subscription fell short. Despite extension of the issue period, shareholders only subscribed for 33.6 million units.
Nepal’s oldest commercial bank currently has a paid up capital of Rs 3.7 billion. NBL’s shares were de-listed by Nepse in March 2004 as the bank was heading towards insolvency. It got re-listed in December 2012 to make way for the rights issue.
-sharesansar
