Odel IPO heavily oversubscribed
The initial public offer (IPO) of ODEL opened for subscription
yesterday, was closed the same day as it was heavily oversubscribed. The
IPO’s Registrar has
Otara Gunewardene |
notified the Colombo Stock Exchange (CSE) that further announcements
will be made in a few days on the total value of the applications
received, and the basis for allocation in the context of the
oversubscription.
The first fashion retailer to go public in Sri Lanka, ODEL offered
16.7 million shares, an 11.5 per cent stake in the company’s equity, at
Rs 15 per share. Of these shares, 1.2 million were set aside for
applications from employees, 3 million for applications of up to 5,000
shares, and 12.5 million shares for applications for more than 5,000
shares.
The Odel store in Colombo |
“The public interest in our IPO has been overwhelming, and a great
source of inspiration,” ODEL’s founder and CEO Otara Gunewardene said.
“Everything we have done since inception has been intended to delight
our customers, and we are most gratified to see the public embracing our
IPO.
The enthusiasm has exceeded even our high expectations.” Founded 20
years ago, the ODEL chain of distinctive fashion and lifestyle stores
now comprises of 12 outlets at Alexandra Place, Kohuwala, Mount Lavinia,
Moratuwa, Panadura, Maharagama, Nugegoda (Warehouse), Dickman’s Road,
Ja-ela, Majestic City, Crescat (Backstage) and at the Bandaranaike
International Airport.
The next store is due to open at Battaramulla later this month, and
ODEL has said the funds raised from the IPO are to be primarily used for
further expansion and improvements to existing stores.
The IPO was managed by CT Capital and John Keells Capital.
ODEL is a standard stop on most itineraries of tourists visiting Sri
Lanka. |