Orient Finance Rs. 1b IPO oversubscribed

Orient Finance PLC’s Rs. 1.07 billion Initial Public Offering (IPO) has been oversubscribed and closed, the Company announced yesterday.

Whilst final figures are likely to be released, as of 27 January, the IPO had drawn 292 applications requesting for Rs. 996.7 million shares. The IPO was for 71.5 million shares at Rs. 15 each and the Company would be listed on the Diri Savi Board.

Of the demand, a single applicant had subscribed for 56.73 million shares worth Rs. 850.95 million or 79.5% of the issue with payment by RTGS. The rest amounting to 291 applicants, with payments by bank drafts and cheques, have subscribed for 9.7 million shares worth Rs. 145.8 million.

Currently Orient Finance is owned by Janashakthi PLC which claims control of 99.95% of the former’s controlling stake. Moreover Orient Finance merged with Bartleet Finance as per a CBSL directive in 2014 and now carries the name of the former.

 Seylan Bank PLC are the bankers to the issue whilst K. H. L Corporate Ltd are the registrars and Kenanga Investment Corporation Ltd are the managers to the IPO.