Views Collection

Banking is the only sector in the local stock market which has been doing pretty well and in addition to it’s performances, general public and investors are more interested in investing upon shares of banks and only banks and as soon as a bank’s share starts its transaction in the Nepal Stock Exchange, the price rockets and normally doubling the par value by the least. The number of applicants always exceeds the number of shares allotted by banks. The Initial Public Offering is always oversubscribed when a bank’s share is issued.

Recently two commercial banks floated share that opened for general public and the same thing happened yet again. The Citizens’ Bank International has floated three million units of shares for general investors at a par value of Rs.100.00 but as early as the third day, the application had been received worth of Rs.5.00 billion, approximately more than 15 times. The issue manager of Citizens’ IPO, the Ace Development Bank would be forced to stop receiving applications as the application is hugely oversubscribed.

The Bank Of Asia which has also floated the same number of shares as Citizens’ Bank International is expected to be the same. The number of application will easily outnumber the allotted shares.

The banking sector is the only sector which has been doing very well in the stock market. No single bank’s share is transacted under par. The highly anticipated share of Nepal Telecom is not able to do well as investors have invested somewhere around Rs.550.00 for a single share.