Kalpitiya and Waskaduwa declare basis of allotment

Kalpitiya Beach Resort and Waskaduwa Beach Resort announced the basis on which it had allotted shares following its recent IPO.

Kalpitiya allotted all shares applied for by retail investors and in the non retail investor category a 100% allotment for applications of over 8000 shares and 27.87% for applications exceeding 8000 shares.

Two hundred and thirty one applications for 536,000 shares were allotted in full while 78 applications for 52,596,000 shares saw an allotment of 15,064,000.

Waskaduwa Beach Resort allotted all shares applied for by retail investors and in the non-retail investor category 100% of shares for applications up to 8000 shares and 27.87% of applications over 8001.

There were 231 applications for 536,000 shares in the retail category and 79 applications in the non retail category for 52,596,000 shares which saw an allotment of 15, 064,000 shares.

Kalpitiya Beach Resort recently announced that its Initial Public Offering (IPO) was oversubscribed 2.3 times while the Waskaduwa Beach Resort IPO was over subscribed 3.4 times. The Kalpitiya IPO of Rs.283 million drew applications to the tune of Rs.663.8 million while Waskaduwa’s Rs. 195 million IPO drew Rs. 665.4 million worth of applications.

The IPO which opened on 30 November drew a heady response with one foreign application even covering the whole issue brokers said.  Brokers said they expect the share price to increase when the issue hits the market despite depressed market conditions.

Kalpitiya offered 16.2 million shares of Rs. 17.50 to raise Rs. 283 million drawing applications for 37.9 million shares through 12 bank guarantees  and 268 bank drafts and cheques while the Waskaduwa IPO of 15.6 million shares of Rs. 12.50 drew 53.235 million share applications through 11 bank guarantees and 302 bank drafts and cheques.

Both companies are to build 150 room luxury resorts in the respective areas.