Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Securities Board of Nepal (SEBON) has granted approval to Himalayan Bank Limited (HBL) to issue a Follow-on Public Offering (FPO) worth NPR 1.45 billion to increase its public shareholding to the regulatory threshold.
According to SEBON, the bank has been permitted to issue a total of 9,250,469 units of FPO shares at a rate of NPR 157 per share, including a premium of NPR 57 on the face value of NPR 100.
The primary objective of the FPO issuance is to restore the bank’s public shareholding to 30%, as required under Nepal’s Bank and Financial Institution Act (BAFIA). The public stake in HBL had dropped to 27.01% after its recent merger with the former Civil Bank, which increased the promoter holding beyond the compliant threshold.
As of now, Himalayan Bank’s paid-up capital stands at NPR 21.65 billion. The bank aims to use this FPO to realign its shareholding structure without diluting investor confidence while ensuring compliance with the legal provisions.
Citizens Capital Limited has been appointed as the issue and sales manager for the FPO.
The approval marks a significant move in Nepal’s banking and financial sector, particularly for listed commercial banks working to align their ownership structures after a wave of mergers and acquisitions. The move also signals confidence in the capital market and offers retail investors an opportunity to buy into one of Nepal’s leading commercial banks at a modest premium.
This development is expected to bolster investor sentiment, increase market liquidity, and maintain regulatory discipline across Nepal’s financial sector. Himalayan Bank’s upcoming FPO will be closely watched by institutional investors, market analysts, and regulators alike.
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