Sunrise primary share lures investors

The collection centres of Sunrise Bank's primary issue were busy today collecting primary share applications for the bank that has floated 37,50,000-unit shares worth Rs 375 million -- the largest among commercial banks -- at Rs 100 per unit par value each.
According to present directives of Nepal Rastra Bank (NRB), a commercial bank has to float 30 per cent primary shares of the paid up capital among the public which comes to 30,00,000-unit shares. "Sunrise Bank has floated 37,50,000-unit shares worth Rs 375 million, the largest ever Initial Public Offering (IPO) by a commercial bank," said Kishore Maharjan, CEO of the bank. After the primary issue, the paid up capital of the bank will touch Rs 1.25 billion.
Maharjan, the CEO of the 23rd commercial bank, also expected that the IPO would be oversubscribed by above 20 times to from over Rs 6 billion to Rs 7 billion. The issue will be open till Wednesday as the Securities Board of Nepal (Sebon) in its new regulation has reduced the IPO application duration to four working days.
In the earlier primary issues, investors complained of fake applications forcing Sebon -- the regulator of the capital market -- to inspect collection centres. "We inspected various counters around the Valley today," informed Niraj Giri, director of the board. There are over 70 collection centres throughout the country for the issue.
After Sunrise Bank, Prime Comercial Bank and Agriculture Development Bank Ltd (ADBL) are also planning to flaot their primary shares. Prime has appointed Citizen Investment Trust (CIT) and ADBL has appointed Ace Development Bank as issue manager. ADBL will float the largest IPO of Rs 960 million -- more than three commercial banks put together -- soon to the public.


Online profile filing
KATHMANDU: Investors can fill their forms online as well for Sunrise Bank's primary issue. NMB Bank Ltd -- the issue manager of Sunrise Bank -- has launched online share application service -- NMB e-Solutions: NMB online share application. An investor can fill the application form online and save time. After filing profile online, the investor gets ID code slip which can be registered at privileged counters of all branches of NMB Bank and Sunrise Bank including six other financial institutions throughout the country. After one gets ID code, one has to manually register at the privileged counters with mandatory documents like photos and photocopy of citizenship certificate and the amount equal to the number of shares sought. Aside from the financial institutions, the bank has opened six other counters at Dashrath Stadium for share applicants.


Nepse dips
KATHMANDU: Nepal Stock Exchange (Nepse) dropped by 5.74 points to close at 642.04 points from Sunday morning's opening of from 647.78 points. All the major markey players -- commercial banks, development banks and finance companies sub groups -- lost as only insurance sub group gaimed. For the first time, the capital market seems to have reacted from the day's political developments. Earlier the market never used to be bothered with political situation. Out of the 56 companies traded -- 16 gained and 33 lost. A total of 2,18,590-unit shares changed hands through 886 transactions. Though the Nepse opped, on Sunday -- the first day of the trading for this week -- the secondary market witnessed Rs 1,03,967,604 turnover.