ADBL set to make IPO history in nation

KATHMANDU: Agriculture Development Bank Limited (ADBL) is floating the largest ever Initial Public Offering (IPO) in the banking history of Nepal.

Having got licence for A-class bank from Nepal Rastra Bank (NRB) after the 38th year of its establishment, the bank has decided to go public with Rs 960 million worth ordinary shares from April 4. Ace Development Bank has been appointed the sales and issue manager. ADBL has registered Rs 1.72 billion profit before tax in the last fiscal year.

Meanwhile, Securities Board of Nepal (Sebon) has given permission to Prime Life Insurance Company Ltd to float initial public offering (IPO) of 10,80,000 unit shares worth Rs 100 each. The insurance company has appointed NIDC Capital Market the issue manager for the IPO worth Rs 108 million. PrimeLife Insurance has total capital of Rs 252 million and earned a net profit of Rs 56.75 million. It has issued 181,000 policies and collected premium worth Rs 488 million till last month.

Sebon has also authorised Surya Life Insurance, Manakamana Development Bank, Gaurishankar Development Bank and Yeti Finance to issue ordinary shares worth around Rs 2 billion.

Surya Life Insurance will issue shares worth Rs 108 million, Manakamana Development Bank is floating Rs 300 million worth shares, Gaurishankar Development Bank is issung Rs 60 million worth ordinary shares and Yeti Finance will issue shares worth Rs 62.5 million. Nilgiri Vikas Bank Ltd is also issuing ordinary shares worth Rs 150 million and its issue manager is Elite Capital. City Development Bank is planning to issue IPO worth Rs 60 million at face value and its issue manager is also Ace Development Bank.

Surya Life's issue manager is NMB Bank, Gaurishankar Development Bank's issue manager is Ace whereas Mankamana Bikas Bank's issue manager is NIDC Capital market.

Nepse steps out

KATHMANDU: Investors from outside the Kathmandu Valley -- Pokhara, Butwal, Birgunj, Narayangud and Nepalgunj -- can buy and sell shares from March. Nepal Stock Exchange (Nepse) is planning to go outside the valley in a bid to make the share transaction possible across the country. According to the sole secondary market of the country, brokers can do transaction from Pokhara, Butwal, Birgunj, Narayangud and Nepalgunj very soon. The Kathmandu-based secondary market has said to be discouraging investors from outside the capital.