First IPO in two years oversubscribed

The first Initial Public Offering (IPO) in two years had been oversubscribed on its official opening day yesterday. 

The HNB Finance Ltd. IPO had an offer for sale of 10 million voting shares at Rs. 5.70 each and a listing of 298.2 million non-voting shares through an introduction at Rs. 4.20 per share.

Registrars to the issue SSP Corporate Services said it had received applications for over Rs. 57 million and the offer was closed at 4.30 p.m. 

The basis of allotment will be notified in due course.

HNB Finance is a subsidiary of Hatton National Bank Plc, which owns 51% of the ordinary shares while 39.57% of the ordinary shares are owned by Prime Lands Ltd. 

In December 2019, the company issued debentures after obtaining a listing of the debentures on the Colombo Stock Exchange amounting to Rs. 1.16 billion in order to comply with the Tier II capital requirement and to expand its loan portfolio. 

Acuity Partners Ltd, who were the Managers of the last IPO in January 2018 for LVL Energy Fund Plc, functioned as Manager and Financial Advisors for this IPO too.