Century Commercial Bank allots primary shares

Century Commercial Bank allots primary shares

Century Commercial Bank has allotted its ordinary shares to the public today. The bank distributed some 9.2 million units of ordinary shares to 157,503 subscribers. Small investors — who had applied for less than 500 unit shares — have been allotted 7.9 per cent of the applied shares, whereas large investors — who had applied for more than 500 units — have been allotted 3.09 per cent of the shares applied. The bank distributed 3.3 million unit shares to 115,334 small investors, and some 4.97 million unit shares have been allotted to the large investors. Due to excessive subscription applications, the bank has to resort to a lottery system to allot shares to investors who had applied for up to 120 unit shares. The 31st commercial bank of the country – and the last of the commercial banks that has to float primary shares – had already allocated 460,000 unit shares to mutual funds and some 460,000 units to its staff. The bank had floated ordinary shares worth Rs 920 million to the public on January 9-13 at a face value of Rs 100 per unit. The issue was managed by Citizen Investment Trust, Nabil Investment, Growmore Merchant, Civil Capital and NIDC Capital Market. As it was the last commercial bank to float Initial Public Offering (IPO), it was oversubscribed by 24.48 times with applications worth Rs 20.2 billion. “The bank will issue share certificates and refund the amount for the non-allotted shares from March 9,” according to chief executive of Civil Capital — one of the issue managers — Bhisma Raj Chalise. Century Commercial Bank’s IPO was also the second largest IPO among banks and the largest among private banks. In 2010, Agricultural Development Bank had issued ordinary shares worth Rs 960 million. The credit rating agency — Icra Nepal — had assigned an ‘[ICRANP] IPO Grade 4+’ to the bank’s Initial Public Offering, indicating below-average fundamentals.
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