Namal launches IPO Fund
National Asset Management Ltd (NAMAL), the pioneer Unit Trust
Management Company in Sri Lanka announced the launch of the NAMAL IPO
The Fund has been launched to capture potential upside on mispriced
IPOs (initial public offerings) as well as to benefit from the
preferential allocation of 10% of the offered shares to the Unit Trust
The fund will invest at the IPO offering stage and in post-IPO
securities for a period of one year. The Fund is targeted at retail
investors with a minimum investment of Rs 10,000 and will enable retail
investors to obtain a meaningful allocation without the hassle of
applying for each individual IPO and obtaining bank guarantees.
NAMAL Executive Director Avanka Herat said "Retail investors have
faced a significant challenge in evaluating IPOs in recent times. With
many IPOs in the pipeline in the next few years, Investors in the Fund
will benefit from the professional selection of IPO securities and
portfolio management by NAMAL's experienced fund management team.
Unique features of the NAMAL IPO Fund are that it would invest in the
post-IPO stage and in other equities in the market if the managers think
that IPOs are not properly valued thus ensuring equity exposure for
The NAMAL IPO Fund will not charge an exit fee to investors even if
they redeem within a short period of the initial investment. The NAMAL
IPO Fund is licensed by the Securities & Exchange Commission of Sri
Lanka as an open-ended Unit Trust..