Myland Development’s Rs. 75 m IPO draws near 7 times oversubscription

The small and medium sector real estate developer, Myland Development Ltd.’s Rs. 75 million worth Initial Public Offering (IPO) has been oversubscribed by 6.7 times.

The offer was for 6.25 million shares at Rs. 12 each. It had received 2,884 applications requesting 41.65 million shares worth Rs. 499.8 million. The IPO closed after oversubscription on its official opening day on 8 December.

Retail applications reflect a 3.9 times oversubscription and nearly 10 times by non-retail and 2 times by unit trusts. In the allocation of shares, retail category has got 40%, non-retail 50% and unit trust 10%. There had been no preferential allotments to any IPO investor or internal parties of the company.

Financial advisor and manager to the issue was SME-listing specialists Atarah Capital Partners Ltd.

Since its incorporation in March 2017, Myland Developments has completed 23 land development projects by September, with all plots developed and sold successfully. Three projects are going on at present – in Dompe on a land of 254 perches, Divulapitiya on a land of 720 perches that was available for sale prior to the IPO, and a third project is underway in Gampaha.

Myland Developments recorded revenue of Rs. 168 million and Profit After Tax (PAT) of Rs. 26 million in the 2020/21 Financial Year. This was a significant improvement from Rs. 121 million Revenue and PAT of Rs. 3 million recorded the previous financial year, with negative sentiments stemming from the ‘Easter Attacks’ impacting financials, the company said.

Myland has strengthened its performance in the first six months half of the current financial year, recording revenue of Rs. 119 million, a 381% increase over the corresponding period year-on-year.