Share Demand

Dec 17, 2010 (LBO) – An initial public offer by Singer Finance (Lanka) to raise 400 million rupees was oversubscribed 120 times, drawing applications worth 48 billion rupees, a statement said. The IPO is mainly to fund Singer Finance’s hire purchase business growth which is reawakening after the 2008-09 business downturn.

Updated The firm had offered 26.66 million shares at 15 rupees each.

Registrars to the issue, SSP Corporate Services (Private) Limited, said in a stock exchange filing they processed 21,000 applications for a total of 3.2 billion shares.

Issue managers NDB Investment Bank said in a statement the 120 times over-subscription was a new record for IPOs.

The IPO closed on the opening day, Wednesday, itself.

Singer Finance, a subsidiary of the Sri Lankan unit of the Singer multinational, will list a 25 percent stake of the firm on the main board of the Colombo bourse.