JAT Holdings IPO oversubscribed on opening day

JAT Holdings Limited’s Initial Public Offering (IPO) of 82,904,846 ordinary voting shares by way of a combination of an offer for subscription and an offer for sale at the Colombo Stock Exchange (CSE), which opened yesterday, was oversubscribed on the opening day.

The IPO offered for subscription 82.9 million shares, at Rs.2.7 each, to raise Rs.2.2 billion. JAT Holdings Limited received applications for over Rs.2.2 billion on the opening day and accordingly, the issue was closed at 4:30 p.m. yesterday. Commenting on the development, CSE CEO Rajeeva Bandaranaike remarked, “We are happy to welcome JAT Holdings Limited as the 10th new listing and fourth equity listing for the year 2021 on the CSE, with a successful equity IPO. 2021 has been a significant year for the CSE, 

as the capital market has facilitated Rs.69.65 billion of capital raised so far. We are confident of this growth trajectory in establishing the CSE as a facilitator of capital.” Commenting on the oversubscription, JAT Holdings Chief Executive Officer Nishal Ferdinando stated, “In record time, the shares issued by the IPO were fully subscribed and we couldn’t be more pleased to acknowledge the trust placed in the JAT brand.

 The oversubscription affirms that the market interest exceeds the shares offered during the IPO, further proving our organisational and financial stability.”

He further commented, “Even with the challenges faced by the COVID-19 pandemic, JAT will continue to make decisions to further expand the business and enhance its strengths to withstand dynamic market trends displayed.” NDB Investment Bank and Capital Alliance Partners Limited acted as the joint financial advisors and managers to the issue.