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Capital Alliance Limited thanks investors as IPO oversubscribes on opening day

Thursday, 25 November 2021 07:44

Capital Alliance Limited thanks investors as IPO oversubscribes on opening day 

Businesscafe - The Initial Public Offering (IPO) of Capital Alliance Limited (CALT) which opened on the 25th of November, was oversubscribed on the same day.

The CALT IPO, which offered 41,177,236 ordinary shares for a 12.5% stake to the public, priced at LKR 10 per share, opened at the Colombo Stock Exchange (CSE) amidst high anticipation and significant traction amongst investors.


CALT extended its gratitude to the investors while acknowledging that the successful oversubscription of Rs. 412 mn IPO is a result of the investor confidence in both the organization and the prospects presented.


The IPO price per share provided a discount of 18.64% to incoming investors compared to the Rs.12.29 price per share derived by the Independent Valuer, Ernst and Young Transaction Advisory Services.


CALT also believes that the attractive average dividend yield of 9.65% will encourage investors to hold the share for the longer term.


The proceeds raised via the IPO will be utilised to strengthen the Company’s core capital, allowing CALT to expand its investments into a range of specific financial instruments.


Capital Alliance Partners Limited is the Manager and Financial Advisor to the issue.


CALT is one of the five non-Bank Primary Dealers in the country.


It forms the Securities Trading arm of the wider Capital Alliance Group (CAL), which deals in an array of Government Securities and Corporate Debt Securities.


Established in 2000, CAL is a full-service Investment Bank in Sri Lanka that caters to a diverse network of family businesses and institutional clientele.


Its expertise in capital markets has translated into the services offered to its clients, including Equity and Debt Advisory, Stockbroking, Fund Management, Private Equity and Securities Research services.

Last modified on Thursday, 25 November 2021 08:03