The Colombo Stock Exchange’s previous record for oversubscription of an IPO was by 20 times, it said.
Channa Amaratunga, Director of CT Capital, lead manager of the Odel IPO, said 22,686 applications had been received from the public, with a cumulative value of 15.995 billion rupees.
The IPO on June 5 closed the same day owing to oversubscription.
Odel offered 16.7 million shares, an 11.5 percent stake in the company’s equity, at 15 rupees per share.
The statement quoted CSE chairman Nihal Fonseka as describing the Odel IPO as a potential catalyst for more listings on the Colombo Stock Exchange.
Fonseka said the very high degree of interest sparked by the IPO also reflected the optimism prevailing in the market, and is an indication that investors are looking for exciting new stocks.
Of the IPO shares, 1.2 million were set aside for applications from employees, three million for applications of up to 5,000 shares, and 12.5 million shares for applications for more than 5,000 shares.
"We are overwhelmed by the response we have had for our IPO," the statement quoted Odel founder and chief executive Otara Gunewardene as saying.
"The figures have been much higher than our usually high expectations. We are extremely pleased with the confidence and the support shown by the public for the brand. We are also happy that it has influenced many first timers to invest in the stock market."
The basis for the allocation of shares to applicants is to be decided shortly.
source - www.lbo.lk
photo credit - www.dailynews.lk
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