Siddhant Raj Pandey, Chief Executive Officer of Ace Development Bank, said growing interest of people to purchase share of ADBL indicated that shares will be oversubscribed by over five times. [break]
“Subscriptions for shares were encouraging during previous IPOs despite huge liquidity crunch, we are sure share subscriptions will go as high as five times in ADBL´s issues,” Pandey told myrepublica.com on Saturday.
A total of 288 outlets have been set up to collect subscription across the country during four-day issue. “We have already completed preparation for distribution and collection of shares from all designated centers across the country,” added Pandey.
With the new issues, total stake for public in the largest commercial bank in terms of branch network would increase by 30 percent to 44.14 percent. The bank issued 14.14 percent shares -- 4.52 million units-- to its debtors on December 10, 2007 in a bid to gradually divest the bank´s share to public.
“Encouraging profit generation, modernization of banking system and substantial growth in transactions are the major factors that will encourage people to invest in ADB´s shares,” he added. The total market value of the bank´s existing shares has reached four billion rupees, compared to the book value of Rs 840 million.
Net profit of the bank has increased to Rs 669.23 million in 2007/08 to Rs 1057.6 million in 2008/09.The bank has projected its profit before tax to stand at Rs 1.55 billion, Rs 1.79 billion and Rs 2.06 billion in the fiscal years 2009/10, 2010/11 and 2011/12.
Securities Boards of Nepal (SEBON)-the capital market regulator--- has assured that the bank will be given approval to list the already issued 4.52 million units of ordinary shares and upcoming 9.6 million units at Nepal Stock Exchange (Nepse), the sole secondary market in the country.
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