Thursday, May 17, 2012

Distilleries biggest private shareholder in People’s Leasing

Business tycoon Harry Jayawardena-controlled Distilleries Company Plc is the biggest private sector shareholder in People’s Leasing Company Plc., after the latter went public via the biggest ever IPO in post-war Sri Lanka.

 With 24.5 million shares Distilleries account for 1.57% stake in People’s Leasing Plc. At the issue price of Rs. 18 per share, Distilleries had invested Rs. 441 million in the IPO.

 Distilleries is also among the five local private sector investors figuring in the top 20 shareholders list of the People’s Leasing.

 The others are Ceylon Guardian Investment Trust (0.84%), Ceylon Investment Plc (0.63%), Capital Alliance Holdings (0.6%) which was also joint manages to the IPO, and David Peiris Motor Company (0.2%).

 The biggest investor in People’s Leasing Rs. 7.02 billion IPO (390 million shares at Rs. 18 each) was National Savings Bank (NSB) taking up 58.8 million shares or 3.77% stake for Rs. 1 billion followed by EPF (55.5 million shares or 3.56%) for Rs. 999 million.

 People’s Leasing is a subsidiary of People’s Bank which owns 75% stake. The mega IPO in November was oversubscribed by 1.3 times or Rs. 2.5 billion drawing 10,485 applications.

 Interestingly six foreign funds figure in the top 20 shareholders list of People’s Leasing. Credit Suisse AG Zurich is the biggest foreign shareholder with 18 million shares or 1.15% stake followed by JP Morgan Clearing Corp, (0.76%), CF Ruffer Pacific Fund (0.64%), Northern Trust/Prince Street Opportunities Ltd (0.46%), Jpmire-GAM Star Fund (0.19%) and Deutsche Bank AG London (0.12%). Of the six, only the latter had reduced its holding since IPO by half as of March 2012.

 Leading local shareholders too have thus far held on to their holdings.

 The primary objective of People’s Leasing IPO was to obtain a listing for the Ordinary Voting Shares on the Colombo Stock Exchange (CSE) to comply with a special directive issued by the Monetary Board.

 As at 31 March 2012, the public holding of People’s Leasing was 24.6%.

 In FY2012, the Company reported a net profit attributable to equity holders of Rs. 4.5 billion, up by 73% over the previous year. Pre-tax profit was Rs. 6.5 billion, up by 70% whilst Group revenue grew by 49% to Rs. 15.9 billion.

 Group assets rose by 51.6% to Rs. 96.78 billion whilst liabilities were up by 41% to Rs. 78 billion. At Company level assets rose by 42.6% to Rs. 79.6 billion whilst liabilities grew by 29% to Rs. 61.3 billion.

 The People’s Leasing Group consists of six subsidiaries namely People’s Finance PLC, People’s Microfinance Limited, People’s Insurance Limited, People’s Leasing Fleet Management Limited, People’s Leasing Property Development Limited, and People’s Leasing Havelock Properties Limited.

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