Union Bank listing opens on Tuesday
The much awaited listing of the Union Bank IPO will take place on
March 29 at the Colombo Stock Exchange.
Having created history with its heavily over-subscribed IPO, Union
Bank plans to consolidate the momentum gained, in its plans for the
future.
As the Bank enters a new phase of growth and utilizes opportunities
in a post-war scenario in Sri Lanka, it remains confident of blazing new
trials in a sector recognized widely as a key stake holder in the
country’s burgeoning economy.
Anil Amarasuriya |
Following the IPO which was oversubscribed by an astounding 417 times
in the public category and 215 times in the customer category, Union
Bank was also assigned BBB and P3 by RAM Ratings Lanka, which further
confirms the Bank’s stability.
The ratings are premised on the bank’s healthy capitalisation as well
as adequate funding and liquidity positions. Although Union Bank is seen
as a smaller bank with a limited reach, the rapidly growing branch
network will strengthen the bank’s presence throughout the island.
Future plans include opening of over 45 new branches by 2013, using the
new capital infusion, the Union Bank CEO and Director Anil Amarasuriya
said.
The innovative fund raiser which comprised three stages including a
Rights Issue and a Private placement prior to the IPO was handled in an
extremely efficient and meticulous manner throughout the process by the
Bank and its joint managers.
Analysts maintain that the response to the Union Bank IPO was up to
date the highest ever oversubscription in Sri Lanka and is easily one of
the highest globally.
The investor response clearly confirmed Union Bank’s status as a
Power House in banking, able to attract and retain a very high level of
interest and confidence.
Union Bank’s portfolio of services covers a range of banking
solutions covering SME, corporate banking, personal banking, trade and
treasury services, Amarasuriya says that providing banking services to
the SME sector gives them the edge in a competitive market.
“We are small enough to offer the kind of flexibility to growing SME
customers’ needs and large enough to fuel their growth into big time.”
Amarasuriya said.
Union Bank’s recent acquisition of Sri Lanka’s oldest asset
management company National Asset Management Limited (NAMAL) highlights
the fast and positive results of Union Bank’s initiatives with regard to
its growth and diversification objectives.
Union Bank acquired 51 percent of NAMAL from Milford Holdings for an
undisclosed sum. Other key shareholders of NAMAL are DFCC (30 percent)
and Ennid Capital in which company B P De Silva Holdings (Singapore) Ltd
has a majority shareholding.
Amarasuriya highlighted that the acquisition of NAMAL fits well with
the Union Bank’s expansion strategy. We see future opportunities to grow
the asset management and unit trust business with the positive post war
economic development and capital market development.
He further stated that the acquisition will also enable the bank to
offer unit trust products to the retail customer base.
With a strong product line up and recovery of non-performing loans
gathering momentum, Union Bank remains confident of its own unique
footprint in the banking industry.
The fact that its Rights Issue was oversubscribed by four times and
its Private Placement was oversubscribed by three times, together with
the phenomenal success of the IPO, speaks volumes for the public
confidence placed in the bank’s ability to deliver results.
The new infusion of capital will also ensure that the Union Bank is
able to meet Central Bank’s core capital requirements successfully. |