Standard Chartered’s FPO allotted

Published On: May 9, 2017 10:05 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 9: The allotment of shares in further public offering of Standard Chartered Bank Nepal Ltd (SCBNL) has been completed with investors applying for up to 140 units getting 10 units of shares through lottery.

NMB Capital -- the issue manager for the FPO - completed the allotment amid a function on Monday. 

Investors applying for more than 140 units shares have been allotted 6.38 percent of shares on a pro rata basis, a statement issued by NMB Capital said.

Pro rata allotment refers to proportionate allocation. It is a method of assigning an amount to a fraction according to its share of the whole. 

Shreejesh Ghimire, the CEO of NMB Capital Ltd, told Republica that investors who have applied for up to 140 units have been allotted 10 units of shares through lottery, while investors applying for shares higher than 140 units will receive 6.38 percent shares. 

SCBNL had floated 2.558 million units of stocks on the further public offering at Rs 1,290 (after levying up Rs 1,190 premium on the face value of Rs 100). The FPO worth Rs 3.3 billion was oversubscribed by nearly 11 times. 

The allotment, which was expected to be completed by Friday, was delayed mainly due to ‘unexpected errors at the final hours’ on the applications made through Applications Supported by Blocked Amount (ASBA), according to NMB Capital Ltd. 

Though securities allotment guidelines require issue manager to complete allotment within 60 days, the Sebon had instructed NMB Capital to allot shares to applicants within 50 days, or by Friday, after considering the liquidity situation in the market and the enforcement of the ASBA system that was expected to shorten the FPO process.

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