Vallibel One IPO oversubscription tops 11 times

The Rs. 533 million IPO of Vallibel One Ltd., (VOL) had been oversubscribed by 11.65 times, the registrars to the issue confirmed yesterday.

The oversubscription rate is one of the highest for recent new issues.

VOL offer of 21.3 million shares at Rs. 25 each had drawn 35,256 applications requesting for 247.05 million shares.

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 been 104 applications via bank guarantees requesting for 155.3 million shares worth Rs. 3.88 billion reflecting an oversubscription of 7.2 times.

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%) as well as an upcoming luxury resort in Negombo. VOL also has interests in renewable energy projects. Recently VOL acquired directly a 51% stake in Lewis Brown and Company, the holding entity of Delmege Forsyth and Company Ltd. and its Group of Companies whilst connected parties acquired the balance.

Acuity Partners were the advisors and managers to the VOL offer.