Shares to flood capital market

Kathmandu, May 4:

Do save – buying shares is the best way to invest your hard earned money. And, there are some 10 financial companies – one commercial bank, four development banks and five finance companies – on the pipeline to float pubic shares worth about half-a-billion rupees.

Of them, the Securities Board of Nepal (Sebon) has already given green signal to eight — three development banks and five finance companies — to float initial public offering (IPO).

“We are studying the applications of Global Bank and Pashupati Development Bank,” said Binaya Dev Acharya, deputy director at the Corporate Finance Division of Sebon.

Global Bank has assigned NIDC Capital markets Ltd as its issue manager.

Apart from these ten financial institutions, two more commercial banks are also preparing to float Rs 300 million worth shares to public, each.

Prime Commercial Bank has already assigned Citizen Investment Trust as its sales and issue manager and the Bank of Asia has picked Nepal Merchant Banking and Finance Company as issue manager.

According to the new regulation of Nepal Rastra Bank, the financial companies must issue 30 per cent minimum shares to the public. Lately, the central bank has also fixed the paid up capital for the finance companies (at Rs 200 million), development banks (Rs 640 million)

and commercial banks (Rs 2 billion).

The central bank’s regulation requires already established financial companies to increase their paid up capital by the end of fiscal year 2012-13.

However, the financial institutions are floating the shares according to the current structure of their paid up capital. The financial institutions play a dominent role in our capital market as it has more than 80 per cent weightage in the total listed companies.

New IPOs

•Global Bank is floating 30,00,000-unit worth 300 million rupees

•Pashupati Development Bank is floating 8,00,000 -unit of shares worth Rs 8,00,000,00

• Subekchhkya Development Bank is floating 1,20,000-unit shares worth Rs 1,20,00,000,

• Triveni Development Bank is floating 1,50,000-unit shares worth Rs 1,50,000,00

• Clean Energy Development Bank is floating 9,60,000-unit shares worth Rs 9,60,000,00.

•Kaski Finance Company is floating 2,00,000-unit of shares worth Rs 2,00,000,00

•Shikhar Finance Company is floating 2,00,000-unit of shares worth Rs 2,00,000,00

•Sagarmatha Merchant Banking and Finance is floating 2,00,000-unit shares worth Rs 2,00,000,00

•Reliable Investment Finance Company is floating 2,47,500-unit shares worth Rs 2,47,500,00

•Lord Buddha Finance Company is floating 2,25,000-unit shares worth Rs 2,25,000,00 — HNS