Sri Lanka’s Ex-pack’s Rs. 700 million IPO subscribed within minutes of its opening
Daily FT: Ex-pack Corrugated Cartons Ltd.’s Rs. 700 million Initial Public Offering (IPO) was snapped up within minutes of its opening and was closed on Friday (22).
The company in a filing to the CSE said the IPO for 83.33 million shares at Rs. 8.40 each was oversubscribed and was closed as per the prospectus. The basis of allotment would be notified shortly thereafter.
Colombo Stock Exchange CEO Rajeeva Bandaranaike said: “We are pleased to welcome Ex-pack Corrugated Cartons Ltd. with a successful IPO oversubscribed on the opening day itself. Ex-pack enters the CSE as the sixth equity listing for the year 2021 on the CSE.”
Bandaranaike said 2021 had been a significant year for the CSE as the capital market had facilitated over Rs. 100 billion in capital raised so far with 19 new listings.
“It is important to note that all the five equity IPOs held in 2021 were oversubscribed on the opening day itself. We are confident of this growth trajectory in establishing the CSE as a facilitator of capital and we welcome businesses of diverse scales and industries to explore the capital raising opportunities made available at CSE,” the CEO added.
The co-managers to the issue, Capital Alliance and Asia Securities, said there was exceptional interest in the IPO from the very beginning and that it had drawn active interest from a range of investors – both individuals and institutions.
Funds raised by the IPO will go towards a Rs. 3 billion ultramodern production facility, which is expected to raise monthly volumes from 2,650 metric tons currently, to 4,000 metric tons by 2025. Ex-pack, a dominant player in the corrugated carton industry, said it remains resolutely committed to delivering exceptional value to its investors, customers, people, communities and other stakeholders.
The subscription of Ex-pack’s IPO within a few hours on the opening day is indicative of the strength and growth of Sri Lanka’s private sector and the growing business potential. Sri Lanka’s private sector has shown a growth momentum even amidst the challenges posed by the global Covid 19 pandemic. The country’s economic resilience and the business conducive environment have assisted the growth of Sri Lankan businesses. With Sri Lanka fast becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions have increased Sri Lanka’s business potential. Foreign businesses/investors could therefore explore the growing opportunities in Sri Lanka and look at forming partnerships or joint ventures with local businesses.
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