The FPO, that will close early on July 3 and lately on July 29, will fetch Rs 7.95 billion to the bank.
The bank has appointed Siddhartha Capital as its issue manager. Moreover, the issue is being underwritten by 8 different underwriter companies including Global IME Capital, NIBL Ace Capital, Civil Capital, CBIL Capital, Sunrise Capital, Laxmi Capital, Sanima Capital and Nepal SBI Merchant Banking.
The interested investors can apply for a minimum of 50 units and maximum of all shares within the limit of NRB through all C-ASBA approved BFIs.
The issue is applicable by institutional investors as well following the amendment of Securities Issue and Allotment Guideline, 2075 (1st Amendment) by SEBON. The same amendment also uncapped the maximum applicable unit in such issues.
Securities Board of Nepal (SEBON) approved the (FPO) on June 17. The bank endorsed a proposal of issuing FPO worth Rs 1.76 billion from the last AGM.
Credit ratings Nepal granted Care-NP IPO Grade 3+ to the issue indicating average fundamentals.
Presently, the company has a paid-up capital of Rs 8.04 billion which will reach Rs 9.81 billion after the FPO issue.
The bank has 62.21 percent share ownership of government and 37.79 percent of general shareholders. After the FPO, the share ownership of government will decrease to 51 percent.
In the third quarter of the current FY, the bank earned a net profit of Rs 2.56 billion and has maintained EPS of Rs 42.57 and net worth per share of Rs 174.
