Mar 23, 2011 (LBO) - Bank guarantees backed most of the applications in a 300 million share issue by Sri Lanka's Free Lanka Capital Holdings to raise 1.5 billion rupees that was massively oversubscribed on the opening day.
A stock exchange filing said it got 424 applications with payment made by bank guarantees for 13.4 billion shares valued at 67 billion rupees.
By comparison, there were 34,421 applications with payment made by bank drafts and cheques for 405 million shares with a value of just over two billion rupees.
The initial public offer by Free Lanka Capital Holdings at five rupees a share closed on the opening day, March 17, itself.
Free Lanka Capital Holdings grows tea and rubber, managing Maturata and Pussellawa Plantations, and also generates hydropower.
Sri Lanka's capital markets and banking regulators plan to cap IPO bank guarantees, many covering the entirety of an issue, to ensure small investors a fairer share, following complaints.
The Securities and Exchange Commission, the capital markets watchdog, recently gave retail investors and unit trusts preference in allocation of shares in IPOs.
The new rules effective from March 15 requires a minimum of 40 percent of the offered shares in an IPO to be offered to individual retail investors.
A minimum of 10 percent of an issue will be made available for allotment to Unit Trust Funds.
source - www.lbo.lk
No comments:
Post a Comment