SDB Bank’s Rs. 4.5 b SPO crosses halfway mark

The Secondary Public Offering (SPO) worth Rs. 4.5 billion of the Sanasa Development Bank (SDB Bank) has crossed the halfway mark.

By noon Friday, the issue had attracted 90 applications worth Rs. 2.3 billion. Payment made by bank guarantee amounted to Rs. 1.08 billion, and others amounted to Rs. 1.2 billion. 

SDB Bank said the SPO would be kept open until Thursday 12 August 4:30 p.m. to facilitate certain investors who had indicated commitments to subscribe upon obtaining their requisite internal approvals. Applications from the public will be accepted as well until 12 August.

The SPO has on offer 68 million new ordinary voting shares to the public at a share price of Rs. 51.50, with provision for an additional 20 million shares in the event of an oversubscription.

Last month, SDB Bank said it had entered into an agreement with the Belgian Investment Company for Developing Countries (BIO) for the latter to take up a 10% stake for Rs. 925 million via the SPO. The placement with BIO is as a cornerstone investor under the identified investor category of the SPO.

SDB Bank said BIO had expressed interest in acquiring a 10% stake in the bank. The equity move is in addition to the investment made by BIO in SDB Bank in 2019 amounting to $ 8 million in unlisted subordinated term debt under Tier 2 Capital of SDB Bank.

The SPO represents the second phase of its capital raising plan which commenced last year. The first phase involved their phenomenally successful Rights issue in FY 2020, which gained recognition as the first-ever digital Rights issue by a Colombo Stock Exchange-listed entity, plus the first local digital share subscription to be oversubscribed.