SDB Bank sets capital market milestone with first-ever digital RI

Saturday, 19 December 2020 00:02 - - {{hitsCtrl.values.hits}}

Raises Rs. 1.5 b and becomes first CSE listed entity to host and complete a right issue digitally

SDB Bank CEO Thilak Piyadigama

SDB bank’s just-concluded rights issue, conducted amid the ongoing COVID-19 pandemic, managed to raise a substantial Rs. 1.5 billion, coming in for praise industry-wide for its freshness in approach and the great receptiveness of their shareholders, the organisation said in a statement yesterday.

Apart from the bank creating capital market history by becoming the first Colombo Stock Exchange-listed entity to successfully host and complete a rights issue digitally, the event was officially recognised as the first local digital share subscription to be oversubscribed.

In early November, the bank informed their shareholders of a bold decision to facilitate the application of their rights entitlement plus additional shares entirely digitally, in coordination with the Colombo Stock Exchange (CSE).

Separate systems were set up for the process, allowing for online application through the Central Depository System (CDS) for CDS account holders and via a dedicated online system developed by SDB bank for non-CDS account holders.

SDB bank’s CEO Thilak Piyadigama added: “The bank’s recently completed digital rights issue being a resounding success highlights the forward-thinking nature of SDB bank’s shareholders, and it strengthens our commitment to deliver even greater financial and social value to all our stakeholders.”

The shareholders responded in record numbers to the notice, leading to the distinction of the first local digital rights issue to be oversubscribed. The many firsts set by SDB bank in digitally administering their latest rights issue is heartening on several counts.

The positive response of shareholders to the new digital model for capital markets introduced by SDB bank bodes well for the future, and it sets a benchmark for the conducting of capital market activities in Sri Lanka in an efficient, timely and convenient manner.