Sri Lanka’s Prime Land Residencies IPO oversubscribed on opening day
The Initial Public Offering (IPO) of Sri Lanka’s Prime Land Residencies’ was reportedly oversubscribed on its official opening day on Tuesday (11) and it closed on Wednesday (12) as per the prospectus.
According to reports, the IPO was for 100 million shares at Rs. 10.40 raising Rs. 1 billion with an option to issue a further 87.5 million at the same price bringing the total to Rs. 1.95 billion.
Following the debut of Prime Lands Residencies’ IPO, the company’s oversubscription forecasts proved to be true as the initial 100 million shares were purchased in record time, local media reports stated.
The Board of Directors had decided to exercise the option to issue up to a maximum of a further 87.5 million shares as set out in the prospectus, local media reports stated.
Local media reports have further noted that these investors stand a dual benefit from the growth of both the real estate market and the share market, which has also seen highly positive growth forecasts over the turn of the year – having secured returns after investing in a reputed, reliable company such as Prime Lands Residencies.
Much to the benefit of the investors, Prime Lands Residencies had offered the IPO at a 40% discount allowing investors to reap a significant capital gain.
The company has reportedly stated that investors will be eligible to avail a significant dividend pay-out of 40% from the profits at the end of the financial year 31 March 2021 of Rs. 975 million profit after tax, within a few months of the listing.
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. The island is also on the path to 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. All this has increased the level of confidence foreign businesses/investors have on Sri Lanka and in turn increased their exploring of business/investment opportunities in the island.
|Article Code :||VBS/AT/20210517/Z_7|