Himalayan Bank Limited has officially received approval from Nepal’s Securities Board (SEBON) to issue its Follow-on Public Offering (FPO), a significant move for the bank and potential investors alike. On Ashad 22, SEBON granted permission to raise Rs. 156.33 crore through this capital-raising exercise.
Under the approved FPO, Himalayan Bank will issue a total of 9,250,469 shares. Each share will have a face value of Rs. 100 with an additional premium of Rs. 57, making the final offer price Rs. 157 per share. This price was set after SEBON revised the bank’s initial proposal, which requested a higher premium of Rs. 69 per share (total Rs. 169).
Citizens Capital Ltd. has been appointed as the issue manager for the FPO, responsible for overseeing the sale and subscription process.
According to the official disclosure, the shares carry a CARE-NP BBB credit rating, reflecting moderate credit quality and adequate safety in terms of timely financial obligations. The current book value per share of Himalayan Bank stands at NPR 171.44, while the last traded price (LTP) in the secondary market is Rs. 223. This suggests a favorable margin between the FPO price and the current market valuation, offering potential upside for investors.
This FPO represents an important step for Himalayan Bank in strengthening its capital base, enabling the bank to enhance its financial position and expand its range of services.
