IPO allure persists; VIBOR's shares may oversubscribe

Vibor Bikash Bank Ltd. made its Initial Public Offering from yesterday (10th June 2009) and shares amounting to Rs. 140 million were subscribed on the day. The huge queues of people to submit their form can be viewed today also as the charm of IPOs in the Nepalese market have gained popularity. Today, the Flow of people has increased than yesterday. I believe the share will be over subscribed today and it will be oversubscribed by 5 to 6 times at the closing of IPO, said Sameer Cheetri, Investment banking head of NMB. He further added that, Nepalese people are really enthusiastic in primary market and I do not have to give you proof, It is visible through out every IPO issuing venue. The landmark decision of Central Bank of Nepal to liquidate the long troubled Nepal Development Bank, however have cast shadow on investor but yet it has positive message, look before you leap. People tend to be cautious before investing in any company and similar perception has derived before going to submit their form and money. The company is issuing 2652000 units of shares to public including its employees which is 39 % share of total paid up capital. According to the 2nd quarter (poush end 2065) unaudited financial result of the bank, it had loss of Rs15.068 million where as it was Rs. 11.501 million loss during the corresponding previous quarter end for the same duration.
Source:
Jamb news source