Mithila Laghubitta Bikas Bank IPO public shares issue next week; 200 times oversubscription projected

Mithila Laghubitta Bikas Bank Limited is all set to issue 70,725 units of ordinary shares through its Initial Public Offering (IPO) next week.

The Securities Board of Nepal (SEBON) has already approved the IPO issuance on December 11, and the microfinance development bank plans to float the IPO next week, according to concerned authorities.

“We are only waiting to get the final nod from the Company Registrar’s Office,” Bhisma Raj Chalise, the Managing Director of Civil Capital, the issue manager, told ShareSansar today. “We are planning to issue it next week.”

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,” Chalise said.

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. - SSN