Capital Alliance Rs.412mn IPO oversubscribed on opening day

The Initial Public Offering (IPO) of Capital Alliance Limited (CAL) which opened yesterday was oversubscribed the same day. 

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

CAL in a statement to media extended its gratitude to investors while acknowledging that the successful oversubscription of Rs.412 million IPO is a result of the investor confidence in both the organisation and the prospects presented. 

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

CAL also believes that the attractive average dividend yield of 9.65 percent 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 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 Capital Alliance Group which deals with an array of government securities and corporate debt securities.