hSenid IPO draws 13.5X oversubscription

Trading to commence on Dec. 21
The IPO of software solutions provider hSenid opened on December 3, 2021 and was oversubscribed in a matter of hours, receiving over Rs.9.3 billion worth of applications from 10,602 applicants, for a total subscription of 745,014,900 shares, against a total of 55,339,076 shares on offer. 

Thus, the offer closed at 4:30 p.m. on the same day, oversubscribed 13.5 times. Trading on the Colombo Stock Exchange (CSE) is set to commence on December 21, 2021. 

This makes hSenid’s IPO one of the most oversubscribed issues in recent times, having drawn active interest from a diverse spectrum of both local and foreign investors, including institutions and high-net-worth individuals. 
The successful conclusion of hSenid’s IPO makes it the first-ever IT/BPM sector player to seek to be listed on the CSE, allowing the public to invest in a whole new sector of the economy and potentially Sri Lanka’s most promising sector for future growth. 

Speaking about the conclusion of the IPO, hSenid Director/Chairman Dinesh Saparamadu said, “It’s indeed an honour to lead the sector into the arena of raising capital through public equity issuances and we couldn’t be happier with the outcome of the IPO. The broad-based interest we received indicates that our insight, that the investing community wants in on Sri Lanka’s IT/BPM growth potential, was right.” 

“Heading in to the IPO was an exciting milestone for all stakeholders of hSenid. This has not been a journey of just a few individuals but an entire network of dedicated employees, partners, advisors and well-wishers. We sincerely thank them all for working together and trusting us in our global journey towards making our mark as an indigenous multinational,” said hSenid Business Solutions Director/CEO Sampath Jayasundera. 

hSenid’s IPO comes as SLASSCOM, the apex body for Sri Lanka’s IT/BPM sector, aims to spur the sector’s export revenue growth to achieve US $ 5 billion annually by 2025, while employing 200,000+ people and creating 1,000+ start-ups. 

Under the guidance of the lead managers and co-managers to the issue, NDB Investment Bank and CT CLSA Capital, hSenid Business Solutions Limited successfully offered 55,339,076 ordinary voting shares to the public, at a price of Rs.12.50 per share, raising close to Rs.700 million in equity capital. These funds are intended to finance product development and market development, along with strategic acquisitions in the APAC and East Africa regions. Over the past five years, hSenid has demonstrated robust growth in PAT, combined with exceptional performance across all other fundamental indicators.