PDB’s IPO oversubcribed

KATHMANDU: The primary issue of Public Development Bank (PDB) has been oversubscribed by over 20 times. According to the preliminary estimate, it received over Rs 1.10 billion worth applications for its Rs 60 million issue of 6,00,000-unit shares priced at Rs 100 per unit.

“Though, it will take a couple of days to get the final data, by the third day — yesterday — we received 49,135 applications worth Rs 665.3 million,” PDB chairman and managing director Kunja Bihari Kayal said, adding that by the second day they received 20,270 applications worth Rs 338 million.

On June 28 — the first day, PDB received Rs 110 million worth applications — almost the double amount than it had asked for. “PDB has a paid-up capital of Rs 90 million and Rs 1 billion authorised capital. After the primary issue, its paid-up capital will touch Rs 150 million,” Kayal added. The bank plans to upgrade to national level development bank.

PDB’s primary issue opened on June 28 and closed today. Despite the Nepal Development Bank fiacso, PDB’s IPO received good response. The new regulation says if the IPO is oversubscribed, it should close by the fourth day.