Sri Lanka’s JAT IPO oversubscription affirms appetite exceeds supply says CEO
Sri Lanka’s JAT Holdings Ltd. has reportedly said the oversubscription of its Rs. 2.2 billion Initial Public Offering (IPO) confirms that the appetite in the market exceeds shares made available.
“The oversubscription affirms that the market interest exceeds the shares offered during the IPO, further proving our organisational and financial stability,” JAT Holdings CEO Nishal Fernando has been quoted as saying in the local media.
“In record time, the shares issued by the IPO were fully subscribed and we couldn’t be more pleased to acknowledge the trust placed in the JAT brand,” Fernando has said.
“Even with challenges faced by the COVID-19 pandemic, JAT will continue to make decisions to further expand the business and enhance its strengths to withstand dynamic market trends displayed,” he has added.
According to reports, JAT had offered a 16% stake, or 82,904,846 ordinary shares priced at Rs. 27 each. Proceeds from the IPO are to be used for the company’s near-term objectives of investment in enhancing the existing R&D facility to a fully-fledged, state-of-the-art facility for all coatings, setting up a manufacturing facility in Bangladesh, expanding the WHITE by JAT marketing and development initiatives and setting up a manufacturing facility in East Africa, according to local media reports.
With a firm market presence in Sri Lanka and Bangladesh, the company reportedly intends on paving its path towards becoming a regional leader in furnishing and finishing industries by honing in on the firm’s growth mindset, resilience, leadership and true potential to innovate; further improving and elevating its current offerings.
The over subscription of the JAT Holdings IPO is indicative of the strength and growth of the country’s private sector. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. It is despite the pandemic challenges that several private sector companies in Sri Lanka have posed a growth momentum. Given that Sri Lanka is also 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, foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka.
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