Anilana raises Rs. 480 m in key IPO

Friday, 14 June 2013 00:00 - - {{hitsCtrl.values.hits}}

Closes issue after deciding not to exercise second option

Anilana Hotels and Properties Ltd. has successfully raised Rs. 480 million, the first tranche of its IPO, the first in one-and-a-half years.

The company said yesterday that it has received full subscription in respect of the first tranche amounting to 40 million shares at Rs. 12 each. The IPO had the option for a further issuance of an equal amount of shares but Anilana said the Board would not exercise the option.

Analysts said the Anilana IPO surpassing the first tranche was commendable given the fact that it was the first to test the appetite in the primary market following tumultuous times experienced by the capital market since early last year.

Anilana has plans to develop several identified strategic locations in the eastern coastal areas and mid-country. This was under two phases. Via phase 1 the company is planning to develop properties at Nilaveli, Passikudah and Dambulla. Under phase 2 further properties will be developed at Pannichankerni, Selladiv Island,Vakarai and Blue Lagoon.

Funds raised via the IPO will be used to part finance the phase one.