UB Finance Company debuts trading on CSE

From left: NDB Investment Bank Director/CEO Darshan Perera, CSE Chief Executive Officer Rajeeva Bandaranaike, UB Finance Company Director/CEO Ransith Karunartne, Senior Director Sabry Ghouse, Union Bank Director/CEO Indrajit Wickramasinghe, CSE Chief Regulatory Officer Renuke Wijewardhane, and NDB Investment Bank Senior VP Saminda Weerasinghe

The shares of UB Finance Company Ltd. (CODE: UBF-N-0000) commenced trading on the Colombo Stock Exchange (CSE) on 14 August. The shares have been listed on the Diri Savi Board of the CSE, under the “Consumer Finance Services” sector. The occasion was marked with a special Bell Ringing Ceremony.

A total of 38.2 million shares from 1,628 transactions were recorded on the opening day at a price range between Rs. 1.10 and Rs. 1.40 and closed at Rs. 1.20. The issue price of the share was Rs. 1.

The event was attended by UB Finance Company Ltd. Senior Director Sabry Ghouse, Directors Raj Moahan Balendra, Jayendra Arulraj Setukavalar, Union Bank PLC Director/Chief Executive Officer Indrajit Wickramasinghe, UB Finance Company Ltd. Director/CEO Ransith Karunartne, Deputy General Manager – Credit Himali Perera, Deputy General Manager – Finance Asanka Udugama, Assistant General Manager – Recoveries Chaminda Weerasinghe, Chief Manager – Operations Samanthi Senevirathna, and the Managers to the Issue, NDB Investment Bank Director/CEO Darshan Perera, Senior Vice President Saminda Weerasinghe, and senior representatives of NDB Investment Bank.

The CSE was represented at the event, by its CEO Rajeeva Bandaranaike, Chief Regulatory Officer (CRO) Renuke Wijayawardhane, CSE senior management and the staff.

Delivering opening remarks, CSE CEO Rajeeva Bandaranaike congratulated UB Finance Company Ltd. on its initiative to go public. “Today is a special day for UB Finance Company Ltd. and for the CSE, as we list the 290th Company. We are pleased to welcome UB Finance Company Ltd. The IPO was oversubscribed on the initial day itself.”

Commenting on the benefits of listing, Bandaranaike further said, “By listing on the CSE, apart from raising capital your company can discover a price for your shares and also has the opportunity of elevating your status as a good corporate citizen. Being a regulated entity, compliance is nothing new to a company like yours. But a listing would further enhance your value in terms of corporate governance practices and public disclosure of company information thereby contributing to an elevated standing as a listed company among your stakeholders, customers, depositors, etc.”

Thanking the CSE and the Securities and Exchange Commission of Sri Lanka (SEC) for advising and guiding through the listing process, UB Finance Company Ltd. Director/Chief Executive Officer Ransith Karunarathne stated, “In November 2011, the Union Bank of Colombo PLC, in collaboration with its strategic investment partner ShoreCap II, invested Rs. 1.15 billion to acquire UB Finance, taking its place in history by becoming the first finance company to be owned by a Private Commercial Bank.”

“Today, guided by principles of integrity and customer empowerment, UB Finance leverages the corporate governance practices and financial strength of its major shareholder to emerge as a notable contender in the financial services sector. With an island-wide network of 17 branches and a committed and versatile team of 320 employees we cater to a customer base exceeding 25,000.” 

Karunarathne further said, “An important landmark in our journey was the triumphant launch of our Initial Public Offering, which was the first IPO to be launched post the announcement of the Domestic Debt Optimisation Plan of the CBSL. This IPO, featuring 55 million ordinary shares opened and closed on 20 July 2023 being oversubscribed by almost two times within minutes of opening. The IPO captured an overwhelming response from retail investors demonstrating confidence not only in UB Finance but also in the entire financial services sector.”