Sri Lanka hydro power IPO oversubscribed 57 times

Nov 02, 2010 (LBO) – Sri Lanka’s Hydro Power Free Lanka Ltd said its 350 million rupee initial public offering has been oversubscribed 57 times with applications worth 19.97 billion rupees flooding in. Hydro Power Free Lankan offered 32 percent of the firm of 35 million shares.

The issue’s managers, Taprobane Holdings Ltd, said the subscription was higher than expected despite advertising with advertising and promotional expenses being kept down.

Tabrobane said there were 43 applicants for the full issue while 69 percent of the applications were for a minimum tranche of 2,000 shares.

Taprobane Holdings said in a statement that the firm’s Board of director was trying to arrive at a basis of allotment that will help retail investors.

The firm said the recent past an IPO for Odel, a fashion retailer attracted 16.01 billion rupees (63.9 times), Raigam Saltern 3.94 billion rupees (19.71 times), Renuka Agri 3.26 billion rupees (12.07 times) and PC House 2.68 billion rupees (4.26 times).

Hemas Power 2.3 billion rupees (3.68 times) Vallibel Finance 1.04 billion rupees (9.12 times and Ceylon Tea Brokers 294 million rupees (10.52 times).