Prime Residencies IPO oversubscribed on opening day

Wednesday, 12 May 2021 00:28 -     - {{hitsCtrl.values.hits}}

  • First tranche of Rs. 1.04 b snapped up whilst second tranche is Rs. 910 m;  Issue closes today 

Prime Group Chairman Premalal Brahamanage
Co-Chairperson Sandamini Rukmal Perera

Prime Land Residencies’ Initial Public Offering (IPO) was oversubscribed on its official opening day yesterday and it will close today as per the prospectus. 

The IPO was for 100 million shares at Rs. 10.40 raising Rs. 1 billion with an option to issue a further 87.5 million at the same price bringing the total to Rs. 1.95 billion.

Following the debut of Prime Lands Residencies’ IPO, the company’s oversubscription forecasts proved to be true as the initial 100 million shares were purchased in record time. 

The Board of Directors have decided to exercise the option to issue up to a maximum of a further 87.5 million shares as set out in the prospectus.

In line with this the Issue will be closing at 4:30 p.m. today (12 May) and application forms will be accepted until such time. 

These investors stand a dual benefit from the growth of both the real estate market and the share market, which has also seen highly positive growth forecasts over the turn of the year – having secured returns after investing in a reputed, reliable company such as Prime Lands Residencies. 

Much to the benefit of the investors, Prime Lands Residencies had offered the IPO at a 40% discount allowing investors to reap a significant capital gain. 

The company also stated that investors will be eligible to avail a significant dividend pay-out of 40% from the profits at the end of the financial year 31 March 2021 of Rs. 975 million profit after tax, within a few months of the listing.

Prime Group is not new to the equity market or to the share market. The company’s 39% stake in HNB finance and the 88% stake in Prime Finance are already well known in the stock market. Prior to the IPO, the company was under sole ownership. 

Commenting on this landmark achievement for Prime, Chairman Premalal Brahmanage had this to say: “Today is a day that means many things to us at Prime Group. The oversubscription tells us that the public’s interest for our shares far exceeds the available supply. We have achieved excellence in the eyes of the public as they have recognised our solid financial performance. 

“The over subscription is a tremendous achievement given the current pandemic situation. This speaks well of the organisation and its impression in the financial market and further booms the share market with a positive outcome. We commend and thank our investors for making a wise investment with Prime Lands Residencies. I want to say that we recognise the importance of meeting shareholder expectations, and delivering long-term shareholder value, which is fundamental for a listed company and furthermore we believe that together with investing public, we can continue to shape the nation’s horizon.”

Prime is a well-respected brand name in Sri Lanka and Prime Group is the first and only Sri Lankan real estate group to secure an issuer rating of (SL)A- from ICRA Lanka. Prime Lands Residencies Ltd. was created in 2016 by amalgamating Prime Homes International, Prime Homes Ltd. and Living Homes Ltd. to focus on envisioning, creating and selling affordable luxury housing projects in the main cities around the country, under the brand name ‘Prime Residencies’ together with high end and ultra-luxury condominiums such as The Grand Ward Place Colombo 7, located in the heart of the Colombo.