Windforce announces basis of allotment of mega IPO

Windforce Ltd. yesterday announced the basis of allotment of its Rs. 3.2 billion Initial Public Offering (IPO), which was oversubscribed by eight times, drawing applications worth Rs. 25.7 billion. 

The offer was 202.6 million shares at Rs. 16 each.

The basis of allotment to be as follows:

Employees: All investors who applied in the employee category to be allotted in full.

All investors who applied in the unit trust category who comply with criteria defined by the SEC Directive dated 6 June 2011 and CSE Listing Rule 2.1.1 (g) (ii) (b) to be allotted in full.

All other investors who applied:

a) Up to 46,875 shares including retail investors – allotted in full.

b) Beyond 46,875 shares: allotted 46,875 shares and 6.524186% of any shares applied over and above the said 46,875 shares.

c. A total of 42,028,125 number of shares were allotted to identified investors. In addition, a further 6.524186% were allotted to identified investors out of the non-allotted component of their application.

Any rounding off differences would be adjusted to the largest applicant. The effective date of allotment is 5 April.

As per the prospectus, the basis of allotment proposed was if IPO is oversubscribed, 30% to retail individual investors, 10% to unit trusts, 7.5% to group employees and directors and 52.5% for non-retail investors. 

When the IPO, the largest in nine years, closed on its official opening day on 24 March, it had received 1,654 applications requesting 1.6 billion shares worth Rs. 25.73 billion. 

There were 1,536 applications requesting 402.18 million shares worth Rs. 6.43 billion via payment made by cheques and Real-Time Gross Settlement (RTGS).

Separately, there were 118 applications requesting 1.2 billion shares worth Rs. 19.3 billion via payment made by bank guarantees.

Windforce currently operates 27 power plants with a total installed capacity of 218 MW. Bulk (55.4%) of this is based in Sri Lanka, while the rest are spread across Pakistan (31.2%), Uganda and Ukraine.

In terms of energy, the company has seven wind plants (69.2 MW), 10 solar power plants (123 MW) and 10 mini-hydro plants (26.4 MW).

Windforce’s share structure is primarily consisted of leading local family businesses, including Akbar Brothers Group (post IPO stake of 33%), Hirdaramani (20.7%), Debug Investments (12.1%) and MAS Holdings (3.3%).

Of the funds raised, Rs. 927 million will be utilised to construct a 15 MW wind plant in Mannar, Rs. 1.4 billion will be utilised to construct a 30 MW solar plant in Senegal and Rs. 932 million will be kept as funds retained for future investments.