LOLC General Insurance IPO oversubscribed on opening day

The initial public offering (IPO) of LOLC General Insurance Limited was oversubscribed within minutes of opening on December 16, 2021.

120,000,000 shares were offered for sale, at a price of Rs.7.90 per share. The offer size was Rs.948,000,000. Over 12,200 applications were received for the value of Rs.11.6 billion, which resulted in the issue being oversubscribed by 12.23 times. This reflects the significant investor confidence in the company, its growth prospects and attractive valuation at the offer price. No preferential allocation was made to any investor. 

LOLC General Insurance Limited is one of the fastest growing general insurance companies in Sri Lanka. The company has been operating in the insurance industry for over 10 years and has established itself as a key player within the industry.

The company is backed by the LOLC group, which enables LOLC General Insurance to benefit from synergies within 

the group.  LOLC General Insurance has a steady stream of business from captive channels within the LOLC group’s finance and leasing operations. In addition, the company has strong partnerships and tie-ups with non-captive channels that contribute to the growth in gross written premiums.  Leveraging on the LOLC group’s global synergies and expansions, LOLC General Insurance has expanded its operation into Cambodia. The company currently owns a 45 percent stake in Serendib Micro Insurance PLC in Cambodia. Furthermore, the company is well placed to replicate its strategy in Sri Lanka in the future and in other markets across Asia and Africa, where the LOLC group already has an established presence.  LOLG General Insurance Chief Executive Officer Kithsiri Gunawardena stated, “We are honoured to have received an oversubscription by 12.23 times. This expression of confidence by the investing public is a reflection of the trust placed on the LOLC group and our exceptional performance during one of the most challenging periods in history for business. We wish to thank the public for subscribing to our IPO and assure them of even better performance leading to creation of even greater shareholder wealth.”

Capital Trust Partners (Pvt.) Ltd and P W Secretarial (Pvt.) Ltd were the managers to the issue.