Friday, 18 July 2014 00:00
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The Rs. 300 million Initial Public Offering of Lucky Lanka Milk Processing Company Ltd. has drawn a demand worth Rs. 453 million.
The final subscription figure reflects an oversubscription of 1.5 times or 66% more.
Managers and registrars to the IPO Merchant Bank of Sri Lank (MBSL) said there had been 1,341 applications requesting 38 million shares worth Rs. 228 million for the ordinary voting shares issued at Rs. 6 each. For the non-voting shares on offer at Rs. 3 each, there had been 1,681 applications requesting for 75 million shares worth Rs. 224.7 million.
The IPO was for 38 million ordinary voting shares at Rs. 6 per share (Rs. 228 million) and 24 million ordinary non-voting shares at Rs. 3 per share (Rs. 72 million).
The IPO had its official opening on 7 July and was closed on 11 July. The Lucky Lanka Milk shares will be listed on the Diri Savi Board of the Colombo Stock Exchange.
Out of the proceeds, Rs. 200 million will settle high cost borrowings, and Rs. 75 million will fund the expansion of the existing production plant with new cold room complex including an ammonia refrigeration system, extension to the existing UHT milk processing building and new machinery including conveyer systems and pigging systems. The remaining Rs. 25 million will be utilised for new projects such as ‘Gedarata Kiri’ milk bar outlets and school canteens.
