JAT shares to debut on CSE tomorrow

The Colombo Stock Exchange’s newest debutant, JAT Holdings Ltd., will commence trading tomorrow following the successful Initial Public Offering (IPO).

The IPO made available a 16.24% stake or 82.9 million shares at Rs. 27 each. The IPO combined an offer for subscription of 55.8 million shares and an offer for sale of 27 million shares.

The Rs. 2.2 billion worth IPO was oversubscribed by nearly two times. 

When the issue closed on its official opening day on 20 July, JAT had received applications worth Rs. 3.95 billion.  

There had been 1,182 applications with payments via bank drafts and cheques requesting for Rs. 1.45 billion worth of shares. 

There were also a further 1,093 applications requesting for Rs. 958.8 million worth of shares, with payments made by RTGS/SLIPS/CEFTs transfers. The JAT IPO also received 20 applications requesting for shares worth Rs. 1.54 billion with payments made by guarantees.

In its basis of allocation, Unit Trusts and retail investors got 100% of the shares applied. For non-retail investors who had applied for up to 25,000 shares too got 100%. Those who applied for over 25,000 shares were allocated a minimum of 25,0000 shares plus 34% of shares applied over and above 25,000 shares.

JAT also said certain identified applicants under this category considered in the view of the Board as medium to long term investors have been allotted/allocated on a preferential basis over and above this percentage in terms of the IPO Prospectus. 

Funds raised via the IPO will be channelled towards several key growth initiatives, including a manufacturing plant in Bangladesh (JAT’s biggest export market), expansion into Africa, a first-of-its-kind R&D centre, and an aggressive foray into the Rs. 20 billion wall paint market.