The bank is issuing the FPO in order to increase its ordinary share’s ratio to 30 percent as per Banks and Financial Institution Act, 2073. Currently, the bank has 27.01 percent of ordinary shares. Its ratio of ordinary shares declines after acquisition of Civil Bank.
The bank is issuing 9,250,469 units of ordinary shares at Rs 157 per unit having face value of Rs 100 and premium of Rs 57.
After the issue, the ratio of ordinary share in the bank will increase to 30 percent.
Interested investors can apply for a minimum of 10 and maximum of all units. The issue will close early on July 20 and lately on July 30.
Care Rating Nepal has assigned BBB rating to the issuer indicating moderate risks.
The bank has appointed Citizens Capital as issue manager. the interested investors can apply from all C-ASBA approved BFIs and Meroshare.
Following the issue, the paid-up capital of the bank will increase to Rs 22.58 billion.
