Rs. 1.5 b Ceylinco Insurance non- voting issue opens today

Ravi Ladduwahetty

The Rs. 1.5 billion Ceylinco Insurance PLC Non Voting share issue opens today, making it the single largest non- voting share issue in the annals of the Colombo Stock Exchange todate.

The company will come out with a Rs. 1487.50 million share non voting issue where 8.5 million shares will be offered at the rate of Rs. 175 per share (premium of Rs. 165).

The Managers to the Issue will be Seylan Merchant Bank PLC.

The Bankers to the Issue will be Seylan Bank PLC. The Registrars to the Issue will be International Corporate Services Co. Ltd, also a member of the diversified Ceylinco Group.

“This is the largest non voting share issue in the annals of the Colombo Stock Exchange and we expect it to be a resounding success, Ceylinco Insurance PLC’s Chief Executive Director (General Insurance) Ajit Gunawardena told Daily News Business.

He said the non voting share was priced at Rs. 50 less than the voting share and the price deficit should be bridged very soon as the Price Earnings was the highest in the market.

Ceylinco Insurance Finance Director Nihal Peirs said response from the broking and investor community was very overwhelming and that there was even a party, which wanted to acquire the entire issue.

The issue, which will be opened today, will be kept opened for 14 market days in consonance with the regulations though the company is extremely confident that the issue will be oversubscribed earlier.

The proceeds of the issue will see the company in for a major regional presence in Asia and the Gulf at least five more offices to its already flourishing overseas network, expansion of the health care sector through the countywide network of medi centres and local branch network of 400

Ceylinco Insurance, which already has overseas presences in Nepal, Bangladesh, Mauritius, the United Arab Emirates, Oman, Qatar, Kuwait will go in for at least five overseas offices in Asia and the Gulf regions.

The Agreement for the Saudi Arabian office has already been signed and should be opened soon.

But the venues of the new offices are yet unknown.