By Shehana Dain
The Candor Opportunities Fund has so far raised Rs. 353.48 million through its Initial Public Offering.
Candor Asset Management Ltd. said as of Monday the offer had received 306 applications via cheques requesting 25.324 million units worth Rs. 253 million and two applications via bank transfer/RTGS transfer for 10 million units worth Rs. 100.25 million.
Candor Opportunities Fund is the first listed fund by CAM. It is offering 50 million units at the initial offer or IPO with the option of increasing the number of units on offer to 75 million, making the total offer value Rs. 750 million.
The IPO which opened on 20 October will remain open until 4:30 p.m. on 9 November or until the offer is fully subscribed.
The fund will be a five-year close-ended fund which would adopt dynamic asset allocation strategies and invest in both listed shares and fixed income securities depending on the investment climate. This strategy is expected to limit any downside risk while capitalising on upward movements in the stock market. While the primary investment objective of the fund is to achieve long-term growth of capital, the fund will also provide annual income to unit holders by way of annual dividends.
Deutsche Bank AG acts as the trustee and custodian for the fund will charge a trustee fee of 0.15% of the net asset value per annum and Rs. 20,000 a month from the whole fund as a custody fee.
The interests of unit holders are safeguarded by the Trustee, and the fund is regulated by the Securities and Exchange Commission of Sri Lanka.
Candor’s parent company; Dubai’s Eagle Proprietary Investment Ltd. invested Rs. 100 million at the IPO to show its confidence in the fund and the Sri Lankan equity market.