KARACHI, Dec 31: Bank of Khyber would make an initial public offering (IPO) of 41 million shares at a price of Rs15 (premium of Rs5 per share) for the general public on January 26-27, 2006. Thus, the total size of the issue would amount to Rs615 million.

It will be the first IPO to enter the equity market in the new year and the second provincial bank after Bank of Punjab to be listed at the local stock exchange.

The purpose of the upcoming IPO was understood to be to comply with the prudential requirement of the State Bank that requires paid-up capital of banks to be Rs2 billion by the end of December 31, 2005. The shortfall of Rs358 million would be met through the issuance of bonus shares. The current paid-up capital of Bank of Khyber is Rs1.23 billion.