Commerz and Trust Bank Nepal allots ordinary shares

KATHMANDU, MAR 26:

Commerz and Trust Bank Nepal has allotted six million units of its ordinary shares to the public today. Some 70,850 applicants have applied for over 68.24 million units of shares.

“Including mutual funds and staff, who were allotted 300,000 units of ordinary shares each, a total of 70,760 applicants were allotted the shares as some 90 applications were invalid,” according to the merchant bankers — Citizen Investment Trust, Nabil Investment, Civil Capital and Growmore Capital — that were appointed as the issue and sales managers for the issue of primary shares of Commerz and Trust Bank Nepal.

The commercial bank has allotted the ordinary shares according to the allotment model prescribed by the regulator of capital market — Securities Board of Nepal — that has directed 40 per cent of shares to small investors — up to 500 units of shares — and 60 per cent shares to big investors, who have applied over 501.

The 29th commercial bank of the country had floated its Initial Public Offering (IPO) from February 17. The issue was closed in four working days, after it had receives overwhelming response that was some 12.63 times more.

“Due to the oversubscription, the small investors applying for up to 500 units of shares were

allotted 10.97 per cent and big investors, who have applied above 500 units were allotted 6.68 per cent as according to the current regulation the primary shares should be allotted proportionately based on the total amount of applications received.”

The investors will get their remaining money from next week,” said the chief executive of the bank Anal Raj Bhattarai. “Commerz and Trust Bank Nepal will list its shares at the Nepal Stock Exchange (Nepse) soon.” Commerz and Trust Bank Nepal that started operations on September 20, 2010, with a paid up capital of Rs 1.40 billion will have a paid up capital of Rs 2 billion now.

Source: THT