People’s Insurance Rs. 750 m IPO snapped up

Peoples Insurance Ltd (PIL) entire IPO worth Rs. 750 million was oversubscribed on its opening day yesterday (16 December), the company said in a CSE filing.

The offer was 50 million shares at an issue price of Rs. 15 each and the issue was closed yesterday as per the prospectus. The basis of allotment will be informed to the CSE in due course.

The IPO shareholder percentage is measured at 25% while People’s Leasing and Finance will own 75% of the company’s equity stake amounting to 150 million shares. Following the IPO, the company will have a capital of Rs. 1.35 billion represented through 200 million shares.

PIL is a fully-owned subsidiary of People’s Leasing & Finance PLC, which is in turn owned by the state sector People’s Bank. The company engages in general insurance business.

PIL is also the first general insurance company in Sri Lanka to adhere to the listing requirement under the amended regulation of Insurance Industry (RII) Act.

NDB Investment Bank Limited, Acuity Partners (Private) Limited and People’s Bank Investment Banking Unit are the joint financial advisors and managers to the IPO.