NDB AVIVA Wealth Management Limited said last week that it was offering retail investors a ‘unique opportunity’ to enjoy the advantages of preferential allocations in many IPOs yet to be offered in the local market through the special 10% allocation granted to Unit Trusts by the Securities and Exchange Commission of Sri Lanka (SEC).
The Eagle Growth Fund and Eagle Growth & Income Fund managed by NDB AVIVA Wealth Management are currently the only qualifying funds in Sri Lanka able to take advantage of this exclusive prospect, the company said.
It said massive levels of over-subscriptions seen on many ‘hot’ IPOs have resulted in meagre allotments to retail investors who have subsequently not been able to reap the benefits of the post IPO price increases.
The SEC has taken action to rectify the situation by enabling a priority access to retail investors by mandating minimum allotments of 40% for direct retail applicants and 10% for retail applicants through Unit Trusts. The Eagle Growth Fund and Eagle Growth and Income Fund are currently the only mutual funds qualified for this concession, and have already invested in selected IPO’s that were listed on the CSE.