NIC Asia Bank Receives Preliminary Approval to Issue 50% Right Shares

NICA has received preliminary approval from NRB to issue right shares amounting to 50 percent of its current paid-up capital.

According to the approval, the bank plans to issue right shares in the ratio of 2:1. This means existing shareholders will be eligible to apply for one additional share for every two shares they currently own.

The approval for the proposed right share issuance was granted by the central bank on Baisakh 17.

What the Right Share Issue Means for Shareholders

A right share offering allows existing shareholders to purchase additional shares directly from the company, usually in proportion to their current holdings. In the case of NIC Asia Bank, shareholders holding two shares will have the opportunity to subscribe to one extra share once the issuance process officially begins.

The proposed right share issuance is expected to strengthen the bank’s capital base and support future business expansion plans.

Next Step: Shareholder Approval at AGM

The proposal will now be presented during the bank’s upcoming 28th Annual General Meeting (AGM) for shareholder approval.

If shareholders endorse the proposal, the bank will then seek final regulatory clearance from the right issuance before proceeding with the issuance process.