ODEL IPO rewrites CSE record books

22,686 investors offer Rs 15.99 b:

ODEL has created history in the Colombo Stock Exchange (CSE) with its initial public offer (IPO) confirmed to have been oversubscribed by 63.8 times (subject to realization of cheques), setting a record for recent times.

The Colombo Stock Exchange’s previous record for oversubscription of an IPO was by 20 times.

Announcing details of the final count of applications received up to 4.30 pm on Monday, June 5, the day the milestone IPO opened for subscription and closed due to oversubscription, its lead manager CT Capital Director Channa Amaratunga said 22,686 applications had been received from the public, with a cumulative value of Rs 15.995 billion.

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.

Commenting on the final outcome of the IPO, ODEL founder and CEO Otara Gunewardene said they are overwhelmed by the response.

“The figures have been much higher than our usually high expectations. We are extremely pleased with the confidence and the support shown by the public for the brand. We are also happy that it has influenced many first timers to invest in the stock market.”

Describing the ODEL IPO as a potential catalyst for more listings on the Colombo Stock Exchange, its Chairman Nihal Fonseka said the very high degree of interest sparked by the IPO also reflected the optimism prevailing in the market, and is an indication that investors are looking for exciting new stocks.