Saturday Nov 23, 2024
Saturday Nov 23, 2024
Thursday, 27 January 2022 01:48 - - {{hitsCtrl.values.hits}}
Hela Apparel Holdings made history this month with the successful oversubscription of the largest initial public offering (IPO) in the past decade.
The IPO, which sought to raise Rs. 4 billion through the issue of new shares, was oversubscribed by 5.4 times and received applications amounting to Rs. 21.8 billion.
It received 23,205 applications from investors, a record number for any IPO in the past 10 years.
The offering was well received by a range of investors, including foreign, institutional, local high-net worth and retail investors, and was oversubscribed in all investor categories. 15,706 applications worth Rs. 3.1 billion were received through the online application portal alone, yet another new record.
Having successfully raised its target of Rs. 4 billion, Hela now looks to the future as it gears up to set further milestones.
Expressing his sentiments, Hela Apparels Holdings Chairman A.R. Rasiah said: “As a social capital-focused company, we are honoured and humbled to have the trust of the Sri Lankan people. We have already started on the work that we believe will give Hela a competitive advantage in the long term. We thank everyone for their participation in this IPO and welcome them to join us on a journey of global value creation.”
Jointly managed by CT CLSA and CAL, the issue witnessed a 20.5% stake in the company, or 267,108,998 ordinary voting shares being offered to the public at a per share price of Rs. 15.
The proceeds of the IPO are intended to be channelled towards boosting supply chain security through an investment in a fabric mill, strengthening core digital systems through the implementation of a new ERP system, productivity-enhancing capex, and strengthening the company’s balance sheet to support its global expansion strategy.
Hela is guided by an experienced and diverse management team and operates across six countries of origin, while generating revenues exclusively in dollars.
