Sunrise shares oversubscribed

KATHMANDU: Sunrise Bank’s shares might be allotted within 70 days, if the primary calculation of the issue manager NMB Bank is to be believed.

According to NMB’s primary calculation, the primary issue of Sunrise Bank has been oversubscribed by around 30 times to Rs 10 billion.

The larger the amount and application, the longer it will take to be allotted. However, it would be

allotted within 70 days at the latest.

Pravin Raman Parajuli, Head-Merchant Banking Department of NMB Bank Ltd — the issue manager of the Sunrise Bank — estimated that the total amount could be around

Rs 10 billion and applications over 3,38185.

The actual amount collected on the fourth and last day yesterday will take a couple of days to be totalled. “Cheques for large amount take at least two days to get cleared from the central bank,” he said adding that the current of roughly around Rs 8 billion — as of today’s calculation — could increase to around Rs 10 billion.

The recently amended Securities Issuance and Registration Regulations has decreased the number of days of application to four. However, the allotment period has been increased. Shares will be allotted within 45 days at the earliest or 70 days at the latest depending on the number of applicants.

The primary issue of 37,50,000-unit shares worth Rs 375 million — the largest among commercial banks — at Rs 100 per unit par value each was floated from Sunday.

The amount and the number of applications on the first three days have been confirmed but the last day’s amount is just an estimate, Parajuli added.

Earlier, the primary issue of Bank of Asia Nepal was oversubscribed by below 19 per cent to Rs 5.40 billion, whereas Citizens’ Bank International’s primary issue was oversubscribed by a little above 20 times to Rs 6 billion.

Due to no other investment opportunity, the investment in financial institutions’ shares has become a newfound opportunity for hopefuls lately.