Asia Asset Finance IPO draws Rs. 232 m

Asia Asset Finance had drawn Rs. 232 million worth of applications for its Initial Public Offering by 6 December.

The company said 92,851,000 shares had been subscribed for through 761 applications for its Rs. 425.4 million share IPO of 120 million shares priced at Rs. 2.50 per share, which opened on 28 November. The issue remains open.

The funds have been earmarked for expansion of the core operations of the company and the listing is in keeping with Central Bank regulatory requirements for finance companies to list.

Analysts have been quoted as saying this was the first of the IPOs not to be fully subscribed on the opening day.

Company officials when contacted at the time of the IPO said they thought the IPO was of a manageable size to market.

Share market conditions have been lacklustre in recent times and officials from stock broking houses have been in talks with the President to change rules relating to credit provision by brokers.