Diversified Vallibel One debuts on CSE today

Vallibel One Ltd., (VOL) will be the latest diversified holding to be listed on the Colombo Stock Exchange today.

With a security code VONE-N-0000, approximately 1.086 billion shares of VOL will be listed on the Diri Savi Board of the CSE.

At issue price of Rs. 25, VOL will be debuting with a market capitalisation of slightly over Rs. 27 billion and given its profile and prospects analysts tip it to head straight to the league of top 20 most valuable listed companies. The high profile personalities involved in the management, the performance of VOL today will be keenly watched with hope for a boost to the market.

VOL is the first holding company of business tycoon Dhammika Perera consolidating some of his personal and controlling/strategic stakes in Royal Ceramics (51%), LB Finance (51%), Sampath Bank (15%), Delmege Forsyth Group (51%) and Orit Apparel (51%) as well as an upcoming luxury resort in Negombo.

VOL’s Rs. 533 million IPO enjoyed a 11.6 times oversubscription, considered as very high in a regime of limitations on bank guarantee applications, bearish market sentiments and billions of cash stuck in other primary and private issues. The over subscription was also much higher than big ticket issues from Expolanka Holdings’ Rs. 2.4 billion (near 5 times) and Softlogic Holdings’ Rs. 4 billion (over four times).

The IPO of VOL, which is the first holding company of business leader’s select investments, involved 21.3 million shares at Rs. 25 each. It drew 35,256 applications requesting for 247.05 million shares worth Rs. 6.17 billion. Acuity Partners were the advisors and managers to the VOL offer.

Applications via bank drafts and cheques (from retailers) amounted to 35,152 requesting for 91.76 million shares worth Rs. 2.29 billion. This amounts to 4.3 times oversubscription at retail level. There had 104 applications via bank guarantees requesting for 155.3 million shares worth Rs. 3.88 billion reflecting an oversubscription of 7.2 times.