KATHMANDU: The primary issue of the Public Development Bank (PDB) received good response as it elicited nearly double the amount of application for its Initial Public Offerings (IPOs).
According to PDB chairman and managing director Kunja Bihari Kayal, the bank on the first day received close to Rs 110 million worth applications for its Rs 60 million issue.
The primary issue of the development bank opened on June 28 and will close on July 1 at the earliest, according to the new IPO regulation. The new regulation stipulates that if the primary issue of a company is oversubscribed, the IPO must be closed on the fourth day.
NIDC Capital Market is the issue and sales manager of PDB’s primary. The bank has Rs 1 billion authorised capital.
Despite the failure of Nepal Development Bank (NDB), public attraction for primary issues of financial institutions has not waned.
NDB shareholders have slim chances of getting their money back as they
are not at the bottom priority to get
their amount back after the liquidation of the bank. Nepal rastra Bank, the
central bank, will soon move Patan Appellate Court for liquidation order of troubled NDB. The court has to decide within 15 days. Once the court gives the order to liquidate NDB, a liquidator will be appointed.