Anilana closes IPO

Tuesday, 18 June 2013 01:00 - - {{hitsCtrl.values.hits}}

Anilana Hotels & Properties yesterday closed its Initial Public Offering (IPO) after having extended by a few days post oversubscription of the first tranche last week.

The company said as of yesterday afternoon it had received subscriptions worth Rs. 486.6 million and accordingly, the issue was closed at 4:30 p.m. yesterday. Analysts said the IPO, the first in one-and-a-half years, had drawn high demand from foreign investors.

The first tranche of Rs. 480 million (40 million shares at Rs. 12 each) was oversubscribed on 13 June and an announcement followed that the company would not exercise the option to go for the balance amount (40 million shares at the same price).

However, subsequently the company extended the IPO citing it was not able to give sufficient notice of the closure of the issue, hence the Board decided to continue to accept applications. The Board nevertheless reserved the right to close the subscription list at any time before the date fixed for closing the IPO, which was 1 July 2013.

Anilana has plans to develop several identified strategic locations in the eastern coastal areas and mid-country. This was under two phases. Via phase 1 the company is planning to develop properties at Nilaveli, Passikudah and Dambulla. Under phase 2 further properties will be developed at Pannichankerni, Selladiv Island,Vakarai and Blue Lagoon.

Funds raised via the IPO will be used to part finance phase one.