People's Leasing IPO oversubscribed by Rs 2.5 billion

The Initial Public Offering (IPO) of People's Leasing Company Limited (PLC) has been oversubscribed by over Rs. 2.5 billion.

The total number of applications received for the IPO amounted to 10,485 raising around Rs 9.5 billion.

The IPO, which opened on November 3 was closed within a few hours on the same day upon being oversubscribed. The demand for the issue emanated primarily from institutional investors, both foreign and local, and customers of the company.

The primary objective of the issue was to obtain a listing for the Ordinary Voting Shares of PLC on the Colombo Stock Exchange (CSE) to comply with a special directive issued by the Monetary Board of CBSL.

The company was required to obtain a listing on the CSE during the calendar year 2011. The IPO was jointly managed by NDB Investment Bank Limited and Capital Alliance Holdings Limited.

The significant investor interest drawn for the IPO amidst negative market conditions both locally and regionally bears witness to the trust placed in the financial position and performance of the Company.

PLC issued 390 million Ordinary Voting Shares at Rs. 18/- per share raising Rs 7,020,000,720.

The new shares will amount to 25% of the Issued and Paid up Ordinary Shares of the Company subsequent to the issue. PLC CEO D.P. Kumarage said, "the oversubscription of the IPO is a vote of confidence in the track record of People's Leasing, which is the market leader and one of the fastest growing leasing companies in the country. "The overwhelming response reflects the trust placed by investors in the company," he said.

The capital raised through the IPO would be utilised for lending and to strengthen the company's capacity to fund its ambitious growth plans.

The company said the basis of allotment of shares to applicants will be notified to the Colombo Stock Exchange shortly.