BNBL offers 17.62mn additional shares

BNBL’s shares oversubscribed

Bhutan National Bank Limited (BNBL) offers additional shares due to an overwhelming order received for their shares.

The notification from the RSEBL states that due to an overwhelming order received for BNBL shares, the Druk Gyalpo’s Releif Kidu as decided to offer 17.620mn additional shares of BNBL to the public.

Although the shares of the BNBL available for sale have been oversubscribed; however, the bidding is still available till July 15.

The available shares are now 35.420mn at the minimum price Nu 33. The BNBL’s shares got oversubscribed on July 5.

The officials from RSEBL said that oversubscription is fine, but the process of auction is open till July 15.

“Even if the shares are oversubscribed at the price discovery or eligible price, equal allotment will be done to all the investors,” officials said.

An RSEBL official said that equal allotment will be done based on the number of subscribers. 

The final price will be discovered at the price where total bid equals available shares for auction and will be the eligible price for the transaction.

Price discovery is based on the volume. The price where the cumulative volume meets the offer for sale volume will be the eligible price for the transaction.

It is the potential investor’s choice that the BNBL’s shares got oversubscribed.

As of Friday, around 14.335mn volumes of shares were subscribed for Nu 33 per share and 22,056 volumes subscribed for Nu 200 per share.

The total bidder for BNBL’s share is 7632 so far.

With the additional shares, BNBL’s total volume of subscribed is 19.733mn which accounts to 56% of the total shares as of Friday. 

Meanwhile, an individual has to buy a minimum of 10 shares and there are no limits on the maximum shares that he/she wants to buy. 

Similarly, the Royal Insurance Corporation of Bhutan Limited (RICBL) has 15.640mn shares offering the floor price at Nu 70 per share. 

As of Friday, RICBL’s total volume subscribed is 2.99mn of which 19% of the total shares were subscribed.  

As of Friday, around 1.8mn volumes were subscribed for Nu 70 per share and 21,471 volumes subscribed for Nu 200 per share. 

The total bidder for RICB is 5872 so far.

A RSEB official said if the RICBL’s shares still remain unsubscribed till July 15, the process of bidding will close.   

“If an individual wants to change the bid price and bid volume they can change in the system. However, the minimum price that they can change can be 50 Chhetrum.”

Dechen Dolkar from Thimphu