Kathmandu, February 12:

Citizens’ Bank International’s Initial Public Offerings is oversubscribed by over 15 times to around Rs 5 billion.

“The IPOs subscription crossed Rs 3 billion till yesterday,” Pramod Pandeya, head-R&D at the Ace Development Bank, the issue manager of Citizens’ IPOs, said adding that today evening collection might touch around Rs 2 billion making it a total of around Rs 5 billion.

“Due to the secondary market’s bad performance in recent months and two commercial bank’s — Citizens’ International Bank and Bank of Asia Nepal (BoAN) — IPOs at the

same time worth equal units and amount, the primary issues, unlike earlier, would not be oversubscribed,” said Sunil KC, deputy general manager of NMb Bank, the issue manager of Bank of Asia Nepal.

Citizens’ International Bank floated three million-unit primary shares at a face value of Rs 100 each on February 3 that total Rs 300 million and BoAN on February 9. According to the rule, if the shares are oversubscri-bed, then the IPO should be closed on the fifth day. If not, the IPO remains open till a month. Citizens’ IPO closed today and BoAN’s IPO will close tomorrow due to oversubscription.

“The time is not favourable,” said an investor who sold other shares he had for the new IPO as the financial institutions are considered more lucrative in the secondary market trading.

BoAN has also floated three million-unit primary shares at the face value of Rs 100 per unit that totals Rs 300 million on February 9. It is also expected to be oversubscribed and close tomorrow. The bank’s primary shares also are expected to be oversubscribed by 15 times to around Rs 4.5 billion.