Sri Lanka’s Kapruka’s Rs. 500 million Initial Public Offering six times oversubscribed - Opportunity Sri Lanka
Sri Lanka’s Kapruka’s Rs. 500 million Initial Public Offering six times oversubscribed

Sri Lanka’s Kapruka’s Rs. 500 million Initial Public Offering six times oversubscribed

Daily FT: The Rs. 500 million worth Initial Public Offering (IPO) of Kapruka Holdings Ltd. has been oversubscribed by six times as per final figures released recently.
The IPO entailed 32,826,000 ordinary voting shares, reflecting a 20% stake in the company, at a price of Rs. 15.40 per share.
When the IPO closed on its opening day, it had received 4,972 applications requesting for shares worth Rs. 2.96 billion. It was managed by Acuity Partners.
There had been 2,030 applications with payments made by bank drafts and cheques requesting for Rs. 758.3 million worth of shares. Applications with payments made by RTGS/SLIPS/CEFTS transfers amounted to 2,930 requesting shares worth Rs. 651.2 million. The IPO also drew 12 applications with payments made by Bank Guarantee requesting for shares worth Rs. 1.5 billion.
On the basis of allocation, retail individuals who applied for up to, and including, 6,000 shares received 100% and those who applied for over 6,000 got 97.82% of the shares requested.
In the non-retail category, which got 50% allocation, 8.2 million shares were allotted to strategic investors, and the balance 8.2 million shares to others proportionately at 8.86% of the shares applied for.
Unit Trusts got 95.84% of the shares applied for. Shares of Kapruka debuted on the Colombo Stock Exchange on Friday (7).
Kapruka Holdings is the holding company of Kapruka, Sri Lanka’s Pioneering ecommerce platform with a global presence.
The capital raised by the IPO is expected to help finance Kapruka’s ambitious expansion and growth plans, which include upgrading existing technology and infrastructure, alongside launching various Kapruka Platform Services to carry forward new initiatives. Kapruka is Sri Lanka’s first and largest locally-owned e-commerce enterprise, founded in 2002 by Dulith Herath.

OSL take:

The increasing oversubscription of IPOs released by local private businesses is indicative of the continuously expanding economy of Sri Lanka despite facing challenges posed by the global Covid 19 pandemic. Many companies in the country’s private sector have gone on to record profits while expanding businesses even amidst the pandemic. Sri Lanka’s geographical positioning in the Indian Ocean, the many trade agreements as well as concessions enjoyed by the country and the ease of doing business environment have all added to the country’s attraction as an emerging business destination in the South Asian region. Foreign businesses/investors could therefore explore the growing business potential in Sri Lanka.

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Article Code : VBS/AT/13012022/Z_3

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