SMB's Rs 100 million IPO opens tomorrow

IPO: Seylan Merchant Bank's (SMB) Initial Public Offering (IPO) of 100 million One Rupee non-voting shares opens tomorrow.

The IPO is part of a move by SMB to enlarge its shareholder base and increase its issued share capital, while also improving its capital adequacy ratio, in line with prudential norms set out by the Central Bank of Sri Lanka.

A unique feature of this issue is that as a special incentive, original subscribers who invest in the IPO will be entitled to a special interest rate of 6 per cent (annualised effective rate) on the leases they obtain from SMB, up to the value of their investment in the IPO.

Subscribers are entitled for this special incentive within a period of two years, even if they have disposed the shares.

The minimum subscription for this issue, which would be listed on the main board of the CSE, would be 1,000 shares.