Vallibel One revises private placement allotment

Wednesday, 26 January 2011 00:56 -     - {{hitsCtrl.values.hits}}

Vallibel One Ltd., (VOL) has revised the basis of allotment of shares for the country’s biggest ever private placement worth Rs. 4.9 billion.

“We decided to allocate across the board all applicants 52% of their requested amount. This is to satisfy the overwhelming demand to the best possible way and in recognition of confidence placed,” VOL Executive Deputy Chairman Nimal Perera told the Daily FT.

The Rs. 4.9 billion issue amounting to 196 million shares at Rs. 25 each drew over 800 applications requesting for Rs. 7.5 billion worth of shares. VOL is the holding company of young business leader Dhammika Perera’s with Royal Ceramics, LB Finance as subsidiaries as well as 15% stake in Sampath Bank.

In addition it has a leisure arm Green Water Ltd which is building a 382 room five star luxury resort in Negombo as well as planned investments in renewable energy projects.

The new basis of allotment is following the previously contemplated method failing to satisfy all.

Previously VOL was planning to allocate in full for those who applied between the minimum of Rs. 2.5 million and Rs. 25 million whilst those who had applied for shares worth between Rs. 26 and Rs. 99 million were to get a prorate allotment. Additionally those who had applied Rs. 100 million and above were to be given an allotment of Rs. 100 million worth of shares.

There had been 27 applications each requesting for Rs. 100 million worth of shares, whilst the biggest application was Rs. 600 million collectively by a high networth individual investor. A foreign institutional investor who participated in a private bank private placement had applied for Rs. 200 million shares as well.

The VOL’s private placement is the precursor to its Rs. 532 million IPO in March with an estimated issue of 21.3 million shares at Rs. 25 each. Post private placement and IPO, public holding in VOL will be 20% with Chairman and Managing Director Dhammika Perera holding 80% stake. As at 31 December, 2010, VOL’s assets amounted to Rs. 21.7 billion.

Investors book more profits

Investors in the Colombo stock market continued to book profits which saw the positive closing of indices seen for past five market days ending, though some fresh round of buying was evident prior to close.

On a day which saw indices see-saw the market recorded a Rs. 3.2 billion turnover and ASPI down 0.5% and MPI lower by 0.8%.

“Short term profit taking weighed on indices during early trading.

However, renewed interest in poultry sector and plantations stocks fuelled by positive interim results created a bullish sentiment towards the end,” NDB Stockbrokers said.

“The ASPI declined on retail profit taking with trading activity continuing to centre on second tier counters,” added John Keells Stock Brokers.

Manufacturing and Beverage, Food & Tobacco sectors were the highest contributors to the market turnover. Manufacturing sector index decreased by 0.64% while Beverage, Food & Tobacco sector index increased by 0.53%.

Laugfs Gas made the highest contribution to the market turnover with a crossing of 494,700 shares at Rs 49.60. The share price increased by Rs 1.30 (2.69%) and closed at Rs 50.

Foreign investors were net sellers for 95.6 million rupees’ worth shares on Tuesday and they have sold a net 2.4 billion rupees so far this year after selling a record net 26.4 billion rupees in 2010.

The rupee LKR= closed weaker at 110.95/111.00 a dollar from Monday’s 110.91/95 on sever importer demand for dollars, traders said.

HVA allots 500 shares applicants in full

HVA Foods Ltd., has decided to allot the full request of applicants who applied for 500 shares in the retail category. The rest of the allotment will be on a pro-rata basis.

The same is applied for non -retail category. For the employee category the basis of allotment is up to 70,000 shares applied for and for those who applied for over 70,000 shares will get 84.15% of the request.

The Rs. 319 million worth IPO offering a 30% stake or 19.928 million shares at Rs. 16 each was oversubscribed by 23 times generating Rs. 7.5 billion worth of applications. There were 64 Bank Guarantees requesting for 441,582,400 shares worth Rs. 7 billion and 11,805 applications via Bank Drafts and Cheques requesting for 30,047,900 shares worth Rs. 480.7 million.

Lanka Aluminium share price soars

Following the triggering of the takeovers and mergers code by business leader Dhammika Perera on Monday, share price of Lanka Alumnium yesterday rose to record highs.

The share peaked to a highest of Rs. 60 before closing at Rs. 56.90, up by Rs. 15.90 or 39% beating the previous highest of Rs. 48.It was the biggest percentagewise yesterday. Only 382,600 shares traded.  Dhammika triggered the Code when he bought 8% stake or 1.14 million shares at Rs. 41.50 each from Rhino Roofing, part of the St. Anthony’s Group.

Previously he held around 29% stake, out of which 25% or 3.5 million shares was bought at Rs. 34 per share late last year.

Second biggest in the industry, Lanka Aluminium is controlled by a foreign fund or trust by the name Clovis Company Ltd., which owns 51% stake. The net asset per share at company level is Rs. 27 whilst at Group basis it is Rs. 33.

The Company has around 960 shareholders among whom are 917 individuals.

Dhammika’s quest for control of Lanka Aluminium is following Hayleys Plc (in which he controls 29% stake) late last year acquiring number one player Alumex for Rs. 2 billion.