Kapruka’s Rs. 500 m IPO 6 times oversubscribed; debuts tomorrow

The Rs. 500 million worth Initial Public Offering of Kapruka Holdings Ltd. has been oversubscribed by six times as per final figures released this week. 

The IPO entailed 32,826,000 ordinary voting shares, reflecting a 20% stake in the company, at a price of Rs. 15.40 per share.

When the IPO closed on its opening day, it had received 4,972 applications requesting for shares worth Rs. 2.96 billion. It was managed by Acuity Partners.

There had been 2,030 applications with payments made by bank drafts and cheques requesting for Rs. 758.3 million worth of shares. Applications with payments made by RTGS/SLIPS/CEFTS transfers amounted to 2,930 requesting shares worth Rs. 651.2 million. The IPO also drew 12 applications with payments made by Bank Guarantee requesting for shares worth Rs. 1.5 billion. 

In the basis of allocation, retail individuals who applied for up to, and including, 6,000 shares received 100% and those who applied for over 6,000 got 97.82% of the shares requested.

In the non-retail category, which got 50% allocation, 8.2 million shares were allotted to strategic investors, and the balance 8.2 million shares to others proportionately at 8.86% of the shares applied for.

Unit Trusts got 95.84% of the shares applied for.

Shares of Kapruka will debut on the Colombo Stock Exchange on Friday. 

Kapruka Holdings is the holding company of Kapruka, Sri Lanka’s Pioneering ecommerce platform with a global presence.

The capital raised by the IPO is expected to help finance Kapruka’s ambitious expansion and growth plans, which include upgrading existing technology and infrastructure, alongside launching various Kapruka Platform Services to carry forward new initiatives. Kapruka is Sri Lanka’s first and largest locally-owned e-commerce enterprise, founded in 2002 by Dulith Herath.