Myland to debut on CSE today

Real estate developer Myland Developments Limited’s (MDL) IPO, opened on December 8, was oversubscribed in a matter of hours, receiving 2,884 applications, which resulted in an oversubscription rate of 6.7 times. 

The company offered only 6,250,000 ordinary voting shares to the public via the IPO, which amounts to 17 percent of the company. The remaining 83 percent of shares are locked in for a period of one year from the date of listing i.e.: until December 28, 2022. The shares were offered at Rs.12 per share at the IPO.

MDL IPO received a large number of retail applications, which caused an oversubscription rate of almost four times in the retail category and it also attracted applications from domestic institutions and high-net-worth individuals (HNWIs), which resulted the non-retail category to be oversubscribed nearly 10 times. Applications were also received by unit trusts, which have minimum 500 unit holders, accordingly 625,000 shares were allotted to this category.   

The manager to the issue was Atarah Capital Partners, which successfully listed Chrissworld PLC and EML Consultants Limited earlier this year.

The successful conclusion of the MDL IPO makes it the first-ever real estate sector player hailing from the Gampaha district to be listed on the Colombo Stock Exchange (CSE), allowing the public to invest in companies having regional business presence. The real estate sector, which usually has a high demand from the domestic clientele, is potentially Sri Lanka’s most promising sector for future growth. 

Speaking about the conclusion of the IPO, Myland Developments Chairman and Independent Non-Executive Director Premachandra  said, “It’s indeed an honour to lead MDL into the arena of raising capital through public equity issuances. This has allowed us to reduce the overdependence on bank funding. The IPO the pawed way for us to maintain a healthy capital structure in the future with both equity and debt capital.   

MDL Managing Director Nalin Perera stated, “I take this opportunity to thank all our new investors for placing their trust and belief in us and we look forward to having them on board.”