RIL Property IPO draws Rs. 1.26 b demand

The Rs. 960 million Initial Public Offering of RIL Property Ltd. has drawn Rs. 1.26 billion worth of demand via 824 applicants.

The IPO was for a new share issue of 120 million ordinary voting shares at Rs. 8 each and was oversubscribed on its official opening day of 4 April.  The company said the IPO received 820 applications requesting 89.18 million shares worth Rs. 713.43 million with payments made by bank drafts and cheques. There were three applications with payments made by bank guarantee requesting 58.75 million shares worth Rs. 470 million. The IPO also drew one applicant with payment made by RTGS transfers requesting 10 million shares worth Rs. 80 million.

RIL Property is a developer, owner and manager of commercial office space in Colombo and provides potential investors with an attractive opportunity to benefit from the strong growth dynamics for office spaces in Colombo. Funds raised via the IPO are to be utilised to refurbish an existing building adding approximately 60,000 sq. ft. of Grade ‘A’ office space to the company’s portfolio and to expand the operations of Foodbuzz Ltd, the fully-owned subsidiary holding the BreadTalk franchise in Sri Lanka.

RIL shares are expected to be traded on the CSE during the first week of May subsequent to processing the applications and payment of refunds.

Commercial Bank of Ceylon Plc (COMB) and NDB Investment Bank (NDBIB) acted as Lead Managers and Joint Managers to the Issue respectively.