Near two times oversubscription for Trade Finance IPO

The Rs. 120 million Initial Public Offering (IPO) of Trade Finance and Investments Ltd. has been oversubscribed by nearly two times.

The company issued six million shares at Rs. 20 each and registrars to the issue, Corporate Services Ltd., said there had been 823 applications requesting for 17.735 million shares worth Rs. 221 million.

Applications with payment made by bank draft and cheques (mainly from retailers) had been 820 requesting for 10.73 million shares worth Rs. 214.7 million. Applications with payment made by bank guarantees were three requiring 7 million shares worth Rs. 140 million.

Basis of allocation will be made public later.

Trade Finance and Investments will use IPO proceeds to expand the branch network enabling the company generate more customers and expand its deposit base.

The company plans to open two to three branches per year and will begin by opening a branch in Kilinochchi in three weeks time, TIF Managing Director L.A.J.F. Morais said. By doing so, it will expand its loan book which is 99% tied up in the vehicle sector to micro-financing aiding farmers who have been resettled in these areas by providing loans at low interest rates.

Trade Finance and Investment was incorporated in 1978 under the umbrella of the J.L Morrison and Sons Ltd. group and was there after converting to an unquoted public company in 1990.

N.G.H. Cooray, the former Chairman of the Jetwing Group, acquired a 93% stake of the company in 1990. The company has been in operation for 33 years and has a staff strength of 25. Among its key directors are Hiran Cooray, Shiromal Cooary, L.A.J.F. Morais, Ajith Fernando, M.I. Furkan and H.R. Peiris.