Kathmandu. NIC ASIA Bank is going to issue right shares to its shareholders. The bank is issuing right shares in the ratio of 2:1.
NIMBS Capital Limited has been appointed as the issue manager for the IPO issuance.
The bank has started the process of issuing right shares on the basis of its current paid-up capital of Rs 14.91 billion as per the approval of Nepal Rastra Bank. Out of the existing 14,91,75,669.22 units of ordinary shares of Rs 100 per share, one unit (2:1) right shares will be issued for each of the two units.
As per the agreement, the bank will issue 7,45,87,835 units of right ordinary shares worth Rs 7,45,87,83,500 to the existing shareholders. According to the bank, the right shares will be issued after the completion of necessary regulatory approvals and other processes.
The bank said it will mobilize the proceeds from the right shares to strengthen the capital structure, further strengthen the capital adequacy ratio and to expand its long-term business and implement its strategic plan.
The agreement was signed by the bank’s Chief Financial Officer Mr. Rupesh Luitel and Deputy CEO of NIMB Ace Capital Limited Mr. Sachindra Dhungana amid a program.
