Siddhant Raj Pandey, Chief Executive Officer of Ace Development Bank - the issue manager for the largest ever IPO in the country, told media persons that about 55,000 people have subscribed for shares worth Rs 1.4 billion till Tuesday evening. [break]
“The warm response from the public despite liquidity crunch and sluggish stock market has encouraged us. We have found equal response to the issue both in the capital and other parts of the country,” Pandey said.
He said application for shares worth Rs 390 million was collected by ADBL´s branches in the capital alone. “Most of the payments for applications were made through banking system in the capital, while home deposits were used in rural areas,” he added. He said applications for subscription will be closed from Wednesday evening.
ADBL has issued IPO of 9.6 million units of shares worth Rs 960 million from Sunday. Bank officials and the issue manager have claimed that the banks share will be oversubscribed by five times due to sound financial performance of the bank. A total of 288 outlets have been set up to collect applications across the country.
With the new issues, total stake for public in the largest commercial bank in terms of branch network will increase 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.
Nepse sheds 5.77 points
Nepal Stock Exchange (Nepse) lost 5.77 points to close at 449.49 points on Tuesday, the third day of week´s trading. The decline in the benchmark index was due to the poor performance of all major trading groups, including Banking, on the day.
Banking and Development Bank groups´ sub-indices suffered loss by 8.86 points and 2.68 points to end at 422.82 points and 462.58 points respectively. Similarly, Hydropower and Finance groups shed 10.24 points and 3.79 points to close at 698.21 points and 442.02 points respectively.
However, Hotels and Insurance groups marginally gained 2.6 points and 0.89 to close at 365.12 points and 565.32 points respectively.
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