Hemas Power IPO oversubscribed 3.7 times

Hemas Power said its Initial Public Offering to issue 31,300,000 ordinary shares was over subscribed by 3.7 (approx) on the first day at the maximum book-build price of Rs. 20.

The total number of applications received was 8,552 amounting to approximately Rs. 2.3 billion.

Among the investor categories were local and foreign funds, and, local and foreign retail investors.

The Board of Directors accordingly decided to adopt the following basis of allotment:

Applications up to and inclusive of 500 shares - 100 percent of shares applied.

Applications over 500 shares - a minimum allotment of 500 shares, plus 25.70 percent of the shares applied over and above 500 shares rounded to the nearest 100 shares.

The number of applications allotted in full amounted to 2,582 (30.9 percent of total valid applications at Rs. 20).

Chairman of Hemas Power, Husein Esufally said, "The Board of Directors joins me in thanking everyone who has placed their confidence and trust in Hemas Power.

With the country's economic climate on a positive and upward trend since the opening of the North and the East, the forward journey is challenging and exciting. We are thus confident that those who participated in this offering will benefit, as they share in our future".

Hemas Power Managing Director, Kishan Nanayakkara said, "The oversubscription of this first ever corporate IPO in post-war Sri Lanka reflects customer confidence in Hemas Power and Hemas Group as well as expectations for better economic performances in the macro front.

As initially planned, the funds will be used for the construction of a Hydro Power Plant and the acquisition and development of other renewable energy projects".