* Rs. 98.9mn in new deposits on first working day of 2011
The Finance Company is planning to raise Rs. 1.6 billion through an initial public offering (IPO) in order to recapitalise the company, fulfil a regulatory requirement and rewarding ‘loyal customers for maintaining consistent relations’ with the company through the financial sector crisis that broke out late 2008. The IPO rolls-off today (11).
The Finance Company is planning to issue 40 million ordinary shares at Rs. 40 each. The subscription list would be opened on January 21 and the prospectus would be made available from today (11), the Listing Division of the Colombo Stock Exchange said.
"The company has achieved stability and sustainable growth during the past two years under the stringent financial policies of the Central Bank and the management guidance of the Merchant Bank of Sri Lanka," The Finance said in a statement yesterday (10).
New deposits grew 47 percent during the third quarter of 2010 with at Rs. 300 million per month while 85 percent of its depositors had consented to renewing their deposits upon maturity. The company’s pawning business grew by 173 percent.
Director/CEO of The Finance, Kamal Yatawara, said the company sees plenty of opportunities cropping up in the financial services market and was preparing itself to cater to the demands created by the expected economic boom this year.
"The first working day of 2011 was remarkable as we received new deposits amounting to Rs. 98.9 million. This is evidence of the speedy turn-around of the company and that public trust and confidence has been cemented," Yatawara said.
He said customers who had remained with the company and new customers who made deposits prior to September 2010 would be able to convert 10 percent of their deposits into equity.
source - www.island.lk
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