KATHMANDU, Dec 21: Salapa Bikas Bank is set to issue an Initial Public Offering (IPO) from Dec 31. After allotting shares to Nepalis employed abroad in the first phase, the bank will open the issue to the general public in the second phase.
The bank has earmarked shares worth Rs 143.9 million, equivalent to 1,439,179 ordinary shares, for the public. Overall, it has received approval to issue shares worth Rs 172.388 million, representing 33 percent of its paid-up capital. Following the first-phase allotment, the remaining shares will be offered to general investors.
Salpa Development Bank’s current paid-up capital stands at Rs 522.3 million. General investors can apply for the shares at a face value of Rs 100 per share from Dec 31 to Jan 4 (Poush 20), with applications ranging from a minimum of 10 shares to a maximum of 25,000 shares.
Salapa Bikas Bank opens IPO for general public, offering 1.439...
As of mid-July last fiscal year, the bank reported earnings per share of Rs 2.24 and a net worth per share of Rs 105.14. The bank has Rs 27 million in its reserve fund.
For the IPO, Infomerics Credit Rating Nepal has assigned the bank an IRN Single B issuer rating, indicating a high level of risk in meeting its financial obligations on time.
Muktinath Capital has been appointed as the issue and sales manager for the IPO.
