Citizens Bank Share Sale Opens for Founders and Public Investors
18th February 2026, Kathmandu
The capital market in Nepal has witnessed a significant development in early 2082 with the official announcement of a structured founder share sale by Citizens Bank International Limited. This commercial bank, which operates as a Class A financial institution, has opened a window for the transfer of promoter ownership, offering a total of over 22,000 units of founder shares across two distinct investor categories. This move comes at a critical juncture for the bank as it navigates a challenging fiscal environment marked by high impairment charges and a strategic focus on capital restructuring. By offering these shares to both existing promoters and the general public, Citizens Bank is seeking to optimize its ownership hierarchy while providing an entry point for long term strategic investors who wish to hold a stake in one of Nepal’s established private sector banks.
Citizens Bank Share Sale
The first segment of the sale is specifically tailored for the existing founder shareholders. Under the current regulatory framework of Nepal Rastra Bank, internal promoters are given the right of first refusal before any founder shares can be offloaded to external parties. For this group, the bank has allocated 3,853.97 units of founder shares at a minimum bidding price of 106 rupees per unit. This pricing is notably close to the par value of 100 rupees, reflecting a preferential rate for those who have been part of the bank’s foundational journey. These units also include bonus shares that were recently approved during the bank’s ninth annual general meeting, highlighting the cumulative value being offered to the existing promoter base.
The second and larger segment of the offering is directed toward public investors and institutional entities. Citizens Bank has made 18,844.72 units available for this category with a significantly higher minimum price threshold of 130 rupees per unit. The 24 rupee premium over the internal promoter price suggests a market oriented valuation for external entrants who do not hold existing founder status. For the general public, acquiring founder shares is often viewed as a strategic move rather than a speculative one. Unlike ordinary shares traded daily on the Nepal Stock Exchange (NEPSE), founder shares are held in a separate category with limited liquidity but often carry a higher degree of influence in corporate governance and board elections, provided the holding exceeds the significant ownership threshold of two percent as defined by the Bank and Financial Institution Act.
To participate in this share sale, interested individuals and institutions must adhere to a strict 35 day application timeline starting from the date of the official notice publication in early February 2026. All applications must be physically submitted at the bank’s central office located in Narayanhiti Path, Kathmandu. This requirement for physical submission at the headquarters underscores the regulated nature of founder share transfers, which require thorough verification of the applicant’s financial standing and compliance with Anti Money Laundering (AML) and Know Your Customer (KYC) protocols. Applicants are expected to provide clear identification, tax clearance certificates, and a formal commitment to the bid price, which must meet or exceed the specified minimums of 106 or 130 rupees depending on their category.
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The timing of this share sale is particularly noteworthy given the bank’s recent financial disclosures for the second quarter of the fiscal year 2082/83. According to the unaudited results published in late January 2026, Citizens Bank International reported a net profit of 358.85 million rupees, which represented a 45.78 percent decline compared to the same period in the previous year. This drop in profitability was largely attributed to a 32.30 percent surge in impairment charges, which reached 1.83 billion rupees, and a rise in non performing loans (NPL) to 6.86 percent. For a prospective investor, these figures provide a dual perspective. On one hand, the negative distributable profit of 1.1 billion rupees and the decline in capital adequacy to 12.43 percent suggest a period of financial stress. On the other hand, a net worth per share of 149.79 rupees indicates that the offering price of 130 rupees is still below the intrinsic book value, potentially offering a value investment opportunity for those who believe in the bank’s long term recovery.
The strategic implications of this founder share sale extend to the bank’s overall governance and liquidity management. By allowing the general public to purchase founder shares, Citizens Bank is gradually broadening its base of influential stakeholders. This can lead to a more diversified board of directors and a more transparent management style. Furthermore, the successful auction of these shares provides an exit route for original promoters who may wish to reallocate their capital into other sectors, while bringing in new investors with fresh perspectives and potentially more robust financial backing. This process of ownership optimization is essential for maintaining a healthy and dynamic banking sector in Nepal, especially as the industry moves toward higher digital adoption and more stringent risk management practices.
In conclusion, the Citizens Bank share sale of 2082 is a multifaceted corporate event that offers a rare opportunity for both existing promoters and the general public to acquire founder level stakes. While the current financial metrics of the bank reflect the broader challenges facing the Nepali banking industry—such as rising defaults and compressed margins—the structured pricing of this offering provides a clear framework for valuation. Investors who are looking beyond short term dividend yields and focusing on long term asset accumulation and governance influence may find the 130 rupee entry point attractive, especially when compared to the bank’s historical net worth. As the 35 day window progresses, the response from the market will serve as a key indicator of investor confidence in the future of Citizens Bank International Limited.
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