CAL announces IPO to raise Rs.412mn

•  Virtual investor forum today

Capital Alliance Limited (CAL) has announced its intentions to list on the Colombo Stock Exchange, by way of an equity initial public offering (IPO). It will be the first standalone non-bank primary dealer to debut on the CSE. 
This issue will open on November 25, 2021. The highly anticipated virtual investor forum will commence today. It is aimed at creating awareness among potential investors prior to the IPO, in order for them to have a thorough understanding about the company and its future growth strategies.

CAL is offering 41,177,236 ordinary shares for a 12.5 percent stake to the public, priced at Rs.10.00 per share. The IPO price per share offers a discount of 18.64 percent to an incoming investor, compared to the Rs.12.29 price per share derived by the independent valuer Ernst and Young Transaction Advisory Services.

CAL also offers an attractive dividend yield of 9.65 percent, which incentivises investors to hold the share for the longer term. 

The proceeds raised via the IPO will be utilised to bolster the core capital of the company, thereby allowing CAL to expand its investments into a range of specific financial instruments. Capital Alliance Partners Limited is the manager and financial advisor to the issue. 

CAL 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.