Friday, December 24, 2010

Sri Lanka small investors get full allotment in finance IPO

Dec 24, 2010 (LBO) - Small investors who applied for up to 500 shares in a share issue by Sri Lanka's Singer Finance (Lanka) will get all they asked for, issue manager NDB Investment Bank said in a stock exchange filing.

It said they got 9,036 applications of up to and inclusive of 500 shares totaling 2,543,500 shares who will get 100 percent of the shares applied for.

Applications for over 500 shares but less than and inclusive of 5,000 shares will get a minimum allotment of 500 shares, plus 5.00 percent of the shares applied for.

Applications over 5,000 shares but less than and inclusive of 50,000 shares will get a minimum allotment of 700 shares, plus 2.00 percent of the shares applied for.

There were 600 applications for over 50,000 shares who will be given a minimum allotment of 1,600 shares, plus 0.38085 percent of the shares applied for.

The Initial Public Offering of Singer Finance of 26.66 million shares at 15 rupees each was oversubscribed by a record 135 times, although mostly with bank guarantees.

"Through this basis of allotment the company has been able to fully satisfy over 42 percent of total applicants in the IPO,” Singer Finance chief executive Shantha Wijeweera said.

The funds raised via the IPO will be used by the company to expand their lending portfolio and branch network.

source - www.lbo.lk

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