Hela Apparel IPO oversubscribed by 5.4 times on opening day

Hela Apparel Holdings, the holding company of Hela Clothing Group, made history this month with the successful oversubscription of the largest initial public offering (IPO) in the past decade. 

The IPO, which sought to raise Rs.4 billion through the issue of new shares, was oversubscribed by 5.4 times and received applications amounting to Rs.21.8 billion. A total of 23,205 applications were received from investors, a record number for any IPO in the past 10 years. 

A statement issued by the company said the offering was well-received by a range of investors, including foreign, institutional, local high-net-worth and retail investors and was oversubscribed in all investor categories. 

15,706 applications worth of Rs.3.1 billion were received through the online application portal alone, yet another new record.

 “As a social capital-focused company, we are honoured and humbled to have the trust of the Sri Lankan people. We have already started on the work that we believe will give Hela a competitive advantage in the long term. We thank everyone for their participation in this IPO and welcome them to join us on a journey of global value creation,” Hela Apparel Holdings Chairman A.R. Rasiah said.  

The proceeds of the IPO are intended to be channelled towards boosting supply chain security through an investment in a fabric mill, strengthening core digital systems through the implementation of a new ERP system, productivity-enhancing capex and strengthening the company’s balance sheet to support its global expansion strategy.