Salapa Development Bank Opens IPO for General Public from Today

Salapa Development Bank Limited has opened its Initial Public Offering (IPO) for the general public starting today (Poush 16). The bank has moved to the second phase of IPO issuance after successfully allotting shares reserved for Nepalis working abroad.

The bank had received approval to issue IPO worth 33 percent of its issued capital of NPR 522.388 million, amounting to NPR 172.388 million, equivalent to 1,723,880 ordinary shares. In the first phase, 172,388 shares were allotted to Nepalis employed overseas who had obtained labor approval from the Government of Nepal. Additionally, 86,194 shares were allocated to mutual funds.

In the second phase, the bank has reserved 26,119 shares for its employees and issued the remaining 1,439,179 shares to the general public at a face value of NPR 100 per share. The total issue size for the public amounts to NPR 143.9179 million.

Investors can apply for the IPO until Poush 20. If the issue is not fully subscribed within this period, the application deadline will be extended until Poush 30. Applicants must apply for a minimum of 10 shares and can apply for a maximum of 25,000 shares.

For the IPO rating, Infomerics Credit Rating Nepal has assigned the bank an IRN Single B Issuer Rating, which indicates a relatively high level of risk in terms of the bank’s ability to meet its financial obligations on time.

The issue and sales manager for the IPO is Muktinath Capital Limited. Investors can apply through the C-ASBA system from banks and financial institutions approved by the Securities Board of Nepal. Applications can also be submitted online via the ‘Mero Share’ platform developed and operated by CDS and Clearing Limited.