People’s Insurance Rs. 750m IPO draws massive Rs. 5.2 b demand

Wednesday, 23 December 2015 00:56 - - {{hitsCtrl.values.hits}}

By Shehana Dain

People’s Insurance Ltd’s Rs. 750 million Initial Public Offering (IPO) has drawn a whopping demand of Rs. 5.2 billion reflecting a seven times oversubscription.

Being the first IPO in recent times and the last for 2015, the issue was for 50 million ten rupee shares at Rs. 15 each. The Company revealed yesterday that at the close of IPO on its official opening there had been 2,116 applications requesting for 345 million shares.

Of the demand, 2093 applications via cheques/RTGS had requested 95.8 million shares worth Rs. 1.44 billion and 23 applications via bank guarantees had requested 252.17 shares worth Rs. 3.8 billion.

People’s Insurance parent People’s Leasing Plc offered 25% stake of the former whilst retaining a 75% stake. 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. PIL 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 Ltd., Acuity Partners Ltd., and People’s Bank Investment Banking Unit were the joint financial advisors and managers of the IPO.