Rs. 1.95 b IPO of Prime Land Residencies snapped up by retailers

• Latest listed entity to debut trading on 8 June

The recently-concluded IPO of Prime Land Residencies Ltd. has drawn over 2,300 applications, mainly from retailers. 

The IPO, aimed at raising Rs. 1.95 billion in two parts, attracted 2,323 applications requesting for shares worth Rs. 2.25 billion. 

Of the demand, 2,316 applications with payment via cheques and fund transfers had requested for 192 million shares worth Rs. 1.99 billion which alone confirms the entire issue was snapped up by retailers. 

The IPO also had seven applications requesting Rs. 251.3 million worth of shares with payment via bank guarantees.

The IPO involved issuance of 100 million new ordinary voting shares at Rs. 10.40 each with an option to issue a further 87.5 million shares in the event of an oversubscription of the initial amount. 187.5 million shares amount to 20% stake of the Company and the IPO success reflected strong investor confidence both in the company as well as the prospects for the real estate sector. The IPO’s manager and financial advisor was Acuity Partners.

Following successful oversubscription, the company has announced the basis of allotment. 

Retail individual investor and unit trust investor categories will get 100% of shares applied for. 

Applications up to and inclusive of 10 million shares (Rs. 104 million) will also get 100% of shares applied. 

Applications with over 10 million shares will get full allocation plus 14.248699% of the shares applied for over 10 million shares rounded up to the nearest 100 shares.

The Colombo Stock Exchange (CSE) said yesterday Prime Lands Residencies Ltd., is scheduled to be listed on the Diri Savi Board with effect from 8 June 2021. The company will be listing 937,500,000 Ordinary Voting Shares and will be classified under the Industry Group “Real Estate (6010)”. 

“The oversubscription is a tremendous achievement given the current pandemic situation. This speaks well of the organisation and its impression in the financial market and further booms the share market with a positive outcome. We commend and thank our investors for making a wise investment with Prime Lands Residencies. 

“I want to say that we recognise the importance of meeting shareholder expectations, and delivering long-term shareholder value, which is fundamental for a listed company and furthermore we believe that together with investing public, we can continue to shape the nation’s horizon,” Prime Group Chairman Premalal Brahmanage said.

Prime is a well-respected brand name in Sri Lanka and Prime Group is the first and only Sri Lankan real estate group to secure an issuer rating of (SL)A- from ICRA Lanka. Prime Lands Residencies Ltd. was created in 2016 by amalgamating Prime Homes International, Prime Homes Ltd. and Living Homes Ltd. to focus on envisioning, creating and selling affordable luxury housing projects in the main cities around the country, under the brand name ‘Prime Residencies’ together with high end and ultra-luxury condominiums such as The Grand Ward Place Colombo 7, located in the heart of the Colombo.