Rs. 1.5 b Free Lanka Capital IPO draws Rs. 69 b demand

Thursday, 24 March 2011 01:18 - - {{hitsCtrl.values.hits}}

FREE Lanka Capital Holdings Ltd. yesterday announced that its Initial Public Offering (IPO) worth Rs. 1.5 billion involving 300 million shares at Rs.5 each has been oversubscribed by approximately 46 times.

A total of 34,845 applications had been received, with a cumulative value of Rs.69.1 billion. Of the applications received 405.2 million shares were applied for via bank drafts and cheques (34,421 applications, value of Rs.2 billion) and 13.4 billion shares were applied for via bank guarantees (424 applications, worth Rs.67.1 billion).

The basis of allocation will be announced later but it will be in compliance with Securities and Exchange Commission directive of providing 50% to individual retail investors (40%) and Unit Trust (10%) and the balance to institutional and large high networth investors.