The initial public offering of Hydro Power Free Lanka Ltd (HPFL) of 1.99 billion shares worth Rs 19.97 billion closed on the same day (October 26) it opened after being oversubscribed by 57 times, the Sri Lankan company said on Wednesday.
The company, to be listed on the Main Board of the Colombo Stock Exchange, offered 32% of its equity stake to the public. The initial offer of 35,000,000 Ordinary Shares at a price of Rs. 10 was raised so as to promote future growth in the company and accordingly the Rs. 350 million sum raised through the issue would be invested in the construction of 2 - 4 more mini hydro power plants (MHPs) in Gampola, Kuruwita and Ragala areas in the near future, the statement said.
The issue managed by the Corporate Finance arm of Taprobane Holdings Ltd drew the highest interest in an IPO in recent times following up on the Odel IPO which raised Rs.16.01 billion and was oversubcribed by 63.9 times.
The IPO launched amidst bearish conditions prevailing in the stock . “Due to the overwhelming investor confidence, arriving at an equitable base of allotment for the share issue have been challenging.
However the Board of Directors of the company will ensure that the small investors are retained with the maximum possible allotment. The basis of allotment will be announced to the market shortly,” it said. |
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