Himalayan Bank Plans FPO Issue, Proposal in January 4 Meeting

Himalayan Bank, a prominent player in Nepal’s banking sector, is making strategic moves to issue Follow-on Public Offerings (FPO) to meet regulatory obligations. The decision comes as the bank aims to enhance public participation in its ownership structure and comply with the mandatory requirement of issuing at least 30 percent of shares to the general public.

In a recent announcement, Himalayan Bank revealed its intention to propose the issuance of FPO during the upcoming general meeting scheduled for January 4, 2023. This move aligns with the regulatory provision that mandates Banks and Financial Institutes (BFIs) to have a minimum of 30 percent of shares held by the general public.

Prior to its merger with Civil Bank, Himalayan Bank held only 15 percent of public shares. The forthcoming FPO is seen as a strategic step to bridge this gap and ensure compliance with regulatory guidelines. The merger not only expanded the bank’s footprint but also increased the imperative to align with the stipulated public ownership threshold.

As of the latest financial update, Himalayan Bank boasts a substantial paid-up capital of Rs 21.65 billion rupees. The specific number of FPO shares to be issued to the general public will be determined by the board of directors, pending authorization from the upcoming general meeting.

Industry analysts anticipate that the FPO will not only fortify Himalayan Bank’s capital base but also foster broader public involvement in the bank’s growth trajectory. The move is expected to generate considerable interest among investors as they eye potential opportunities in the dynamic financial landscape of Nepal.

Investors and stakeholders alike are eagerly awaiting the outcome of the general meeting, where the bank’s proposal for FPO will be presented and discussed. Himalayan Bank’s strategic decision to embrace FPO reflects its commitment to regulatory compliance and a proactive approach to aligning its operations with the evolving financial landscape in Nepal.