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The Initial Public Offer of Hemas Holdings Limited was opened and concluded on September 18 having being significantly oversubscribed in the run-up period to the official launch.

The Offer, which amounted to Rs. 600 million, saw an overwhelming and unprecedented public response, which perhaps set records for new equity offerings on the Colombo Stock Exchange. At the final count, the total value of applications received amounted to Rs. 6.91 billion from 11,941 applicants.

This value of applications represents perhaps the largest ever response to an Initial Public Offer, while the extent of over-subscription (11.5 times) as well as the number of applications received, were also among the highest.

The applicants were widely spread among retailers and institutions, and also included foreign investors. With total demand amounting to 137,346,600 shares out of a possible 11,400,000 (excluding employees and their allotments), the allocation on a strict pro-rata basis would have been 8.3% (i.e., 11,400,000 / 137,346,600). The Directors have however ensured that the allocation has been formulated in a manner such that the great majority of applicants would receive a percentage of their application in excess of the pro-rata average of 8.3%. It is considered that this will be the most equitable basis.

The Directors are also mindful of the need to unlock the applicants' funds and accordingly the refund process as well as the despatch of share certificates, will be carried out as fast as possible, well ahead of the statutorily stipulated time schedules.

Accordingly, the shares could be expected to trade in the third week of October. Given the unprecedented demand demonstrated in the IPO, the market expects a strong secondary trading performance for the Hemas share.

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