The IPO, which will continue till June 5, is being considered a barometer to measure the trust and confidence of the public won by the bank since its establishment in July 2010, according to Mega CEO Anil Keshary Shah.[break]
The bank, which is floating 6.99 million units of common stocks worth Rs 100 each, has appointed Citizens Investment Trust, Nabil Investment Banking Limited, NMB Capital Limited and NIBL Capital Markets Limited as issue managers for the IPO.
“We have established 133 collection centers in 40 districts from where people can file application to purchase shares of Mega,” Shah told a press conference held in Kathmandu on Monday. “These collection centers will cater to almost 18 million people, which is almost 68 percent of Nepal"s total population.”
To give a boost to the IPO, the bank has already introduced a deposit product called "Mega IPO Savings Account" for the convenience of those interested in investing in bank"s shares.
The account, which provides a yield of 6 percent per annum, can be opened with a minimum balance of Rs 5,000. “The quoted amount for purchase of shares can be paid conveniently through this account. Dividends that bank shares generate will also be deposited in the same account,” Shah said.
Mega Bank, which was established by 1,219 Nepalis from 63 districts, has so far been providing banking services through 28 branches, 45 branchless banking outlets and 31 automated teller machines.
The bank generated a net profit of Rs 130 million in the third quarter of the current fiscal year, up from Rs 71.8 million recorded in the same period last fiscal year. The bank collected deposits of Rs 12.84 billion till the third quarter and extended loans of Rs 11.87 billion till the same period.
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