Sri Lanka’s JAT Initial Public Offer of Rs. 2.2 billion oversubscribed
The Rs. 2.2 billion-worth Initial Public Offer (IPO) of Sri Lanka’s JAT Holdings Ltd. was reportedly oversubscribed on its official opening day and subsequently closed.
The Company has stated that it had received applications for over Rs. 2.2 billion and accordingly the IPO was closed at 4:30 p.m. on Tuesday (20) as per the prospectus.
Commenting on the development, Colombo Stock Exchange CEO Rajeeva Bandaranaike has been quoted as saying: “We are happy to welcome JAT Holdings as the 10th new listing and fourth equity listing for 2021 on the CSE with a successful equity IPO. 2021 has been a significant year for the CSE as the capital market has facilitated Rs. 69.65 billion of capital raised so far. We are confident of this growth trajectory in establishing the CSE as a facilitator of capital.”
According to reports, JAT Holdings IPO involved 82.9 million shares at Rs. 27 each inclusive of 55.8 million shares as offer for subscription and 27 million shares as offer for sale. Funds via the IPO will be used for several key growth initiatives including a manufacturing plant in its biggest export market Bangladesh, foray into East Africa, a world class R&D centre and strengthening market and development initiatives.
Financial advisors and managers to the IPO are Sri Lanka’s NDB Investment Bank and Capital Alliance Ltd.
OSL take:
The over subscription of Sri Lanka’s JAT Holdings IPO is indicative of the strength and growth of the country’s private sector. Sri Lanka’s business conducive environment and the continuously improving ease of doing business environment in the country have made it an ideal business destination. Sri Lanka is fast becoming a business hub in the South Asian region given its geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. The ongoing development programme has further boosted Sri Lanka’s appeal as a business destination. The country’s economy has also shown some sectors posting growth rates despite challenges posed by the global Covid 19 pandemic. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210722/Z_6 |