Sri Lanka’s HNB Finance Limited’s Initial Public Offer over subscribed
HNB Finance Limited of Sri Lanka has reportedly stated that it has received applications in excess of the Rs. 57 million in shares the company was selling through an Initial Public Offer (IPO) this week.
The stock sale, managed by Acuity Partners (Pvt) Ltd, was the first initial public offer in two years.
According to reports, the IPO, which offered 10 million shares at 5.70 rupees a share, closed at the Colombo Stock Exchange at 4.30pm on Monday (17).
HNB Finance had also offered 298.2 million non-voting shares through an introduction at Rs. 4.20 a share.
Hatton National Bank (HNB), which is the second largest listed bank in Sri Lanka, holds 51 percent of the shares in HNB Finance while Prime Lands, which is a real estate developer, owns a 39.57 percent stake.
Prime Lands was the selling shareholder for the IPO, divesting a 0.7 percent stake in the firm and following the IPO, Prime Lands will own a 38.86 percent stake in HNB Finance.
The third largest shareholder is the Luxembourg-based DWM Funds holding a 7.9 percent stake.
HNB Finance was part of the Ceylinco Group which was bought by Prime Lands in 2011 during the former’s collapse.
The over subscription of the above mentioned IPO is indicative of the strength and growth of Sri Lanka’s private sector as well as the growth of the country’s overall economy. All this would definitely be a confidence booster to foreign businesses/investors to engage with Sri Lanka. Also, Sri Lanka’s geographical positioning in the Indian Ocean, the easeof doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/25022020/Z_6 |