Sri Lanka’s JAT Holdings Initial Public Offering oversubscribed by two times
The Rs. 2.2 billion Initial Public Offering (IPO) presented by Sri Lanka’s JAT Holdings Ltd. has reportedly been oversubscribed by nearly two times.
According to reports, when the issue closed on its official opening day on 20 July, JAT had received applications worth Rs. 3.95 billion and there had been 1,182 applications with payments via bank drafts and cheques requesting for Rs. 1.45 billion worth of shares.
There were also a further 1,093 applications requesting for Rs. 958.8 million worth of shares, with payments made by RTGS/SLIPS/CEFTs transfers, local media reports have stated.
The JAT IPO also received 20 applications requesting for shares worth Rs. 1.54 billion with payments made by guarantees, reports further noted.
The IPO had made available a 16.24% stake or 82.9 million shares at Rs. 27 each and had combined an offer for subscription of 55.8 million shares and an offer for sale of 27 million shares.
JAT will be the first-ever wood coating and paint manufacturer and exporter to list on the CSE, local media reports added.
Funds raised via the IPO are to be channelled towards several key growth initiatives, including a manufacturing plant in Bangladesh (JAT’s biggest export market), expansion into Africa, a first-of-its-kind R&D centre, and an aggressive foray into the Rs. 20 billion wall paint market.
OSL take:
The two time oversubscription of Sri Lanka’s JAT Holdings IPO is indicative of the strength and growth potential of the country’s private sector. The government of Sri Lanka is focused on improving the country’s business conducive nature and the ease of doing business environment. All this together with the ongoing aggressive development programme aimed at taking the country to the next level of development, business/investment opportunities in Sri Lanka are continuing to further expand. Sri Lanka is also becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore opportunities in Sri Lanka.
| Article Code : | VBS/AT/06082021/Z_2 |