The Securities and Exchange Commission (SEC) of Sri Lanka yesterday (25) revised the rules pertaining to the basis of allotment of an initial public offering as follows:
"Subject to Rule 3.1.5 (b) the number and/or percentage of shares to be allotted to the public, employees, financial institutions etc. by category and the manner in which the allotment is to be carried out. Where there is or is to be more than one class of shares (other class of shares) in issue, like particulars shall be given for each additional class in accordance with these rules and subject to Rule 3.1.5 (b).
A minimum of 40 percent of the offered shares of a particular share class, in an IPO to be initially made available for allotment to retail individual investors. ‘Retail individual investor’ shall mean an individual investor who subscribes for a maximum of 3,000 shares or a value of not more than Rs. 100,000 in a particular share class, whichever is higher.
A minimum of 10 of the offered shares of a particular share class in an IPO to be initially made available for allotment to growth or balanced unit trusts operated by managing companies licensed by the SEC to operate such unit trusts, where such unit trust comprises of not less than 500 unit holders resident in Sri Lanka who together hold at least 50 percent of that fund.
In the event of an under-subscription in the unit trust investor category, the retail individual investor category shall be given first priority in allotment of the under-subscribed shares.
In the event of an under-subscription in the retail individual investor category, the unit trust investor category shall be given first priority in allotment of the under-subscribed shares," the SEC said.
source - www.island.lk
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