TFI releases share allotment basis

Trade Finance and Investment will be allotting investors who applied for over 25,000 shares 25,000 shares, the company’s registrar said in a stock exchange filing.

The company issued six million shares at Rs. 20. Twenty five per cent of the remaining shares applied for provided applicants entitled to 50 shares on this percentage basis will be allotted a further 50 shares to prevent allocation of odd lots.

The remaining 9,800 shares will be allotted to the two largest applicants – Capital Alliance Holding (4,900 shares) and Associated Electrical Corporation (4900).

The company summed up its allocation basis in the stock exchange filling as follows: 20.8% to retail investors who applied for 1,253,000 shares and 4,747, 000 shares to non retail investors who applied for 79.1% (16,477,000) of the shares. Unit Trusts have not applied for or been allotted shares.

Trade Finance and Investment (TFI) opened its Initial Public Offering for subscription on 28 September to double its stated capital when it raised Rs. 120 million. Sixty seven per cent of its deposit base has been held by directors and the balance 33 per cent by related and known parties and when the company grows its loan portfolio with the capital raised it will be the first time that it takes its deposit base public.

“The company hopes to increase visibility and its brand image and broaden public share ownership,” TFI Managing Director L.A.J.F. Morais said at the time.

Twenty million of the proceeds of the IPO will be used to expand the branch network enabling the company generate more customers and expand its deposit base.

TFI was incorporated in 1978 under the umbrella of the J.L. Morrison and Sons Ltd. Group and was thereafter converted to an unquoted public company in 1990. N.G.H. Cooray, the former Chairman of the Jetwing Group, acquired a 93 % stake of the company in 1990.

The company has been in operation for 33 years and has a staff strength of 25. Among its key directors are Hiran Cooray, Shiromal Cooray, L.A.J.F. Morais, Ajith Fernando and M.I. Furkan and its Chairman  is H.R. Peiris.