Rs. 747.6 million Agarapatana Plantations IPO draws applications worth Rs. 1.47 billion
Daily FT: The Agarapatana Plantations Ltd., Initial Public Offering (IPO) has been oversubscribed by two times drawing nearly 3,000 applications.
The IPO involved 83,070,111 Ordinary Voting Shares at Rs. 9 each or Rs. 747.6 million. The quantity of shares amounts to 16.61% of the post-issue Ordinary Voting Shares. The Net Asset Value per share of the Equity (NAV) is Rs. 8.43 and the Offer Price was 1.07 times the NAV.
The company said the value of shares applied amounted to Rs. 1.47 billion (164.17 million shares) via 2,970 applications.
There had been 1,490 applications with payment via RTGS/SLIPS/CEFTS transfers requesting for 24.7 million shares worth Rs. 222.7 million. Payments via bank drafts and cheques amounted to 1,468 applications requesting for 70.68 million shares worth Rs. 636.15 million. The IPO also drew 12 applications with payments via bank guarantees with requests for 68.7 million shares worth Rs. 618.68 million.
As per the basis of allocation, all retail individual investors who applied in the Retail individual Investor category to be allotted in full. Applications amounting to 17.54% of the issue were received from Retail individual Investors and all applications were allotted in full.
OSL take:
The interest shown in Sri Lanka’s Agarapatana Plantations is indicative of the overall business potential in Sri Lanka’s plantation industry. The government of Sri Lanka is focused on developing and expanding businesses in the plantation industry – tea, coconut and rubber industries. Many incentives have been offered to businesses engaged in the industry to develop and expand operations while the export authorities are engaged in the lookout for new markets and carrying out promotional campaigns to boost market opportunities. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost Sri Lanka’s plantation industry, especially in the marketing of export crops and value-added products. Local businesses engaged in the plantation industry are therefore on an expansion path showing great business potential in the coming months. Foreign businesses/investors could therefore explore the growing business/investment opportunities in Sri Lanka’s plantation industry.
| Article Code : | VBS/AT/20230828/Z_6 |