Sri Lanka Janashakthi Insurance gets Rs800mn in subscriptions

June 17, 2008 (LBO) – An initial public offer of Janashakthi Insurance has so far received 5,500 applications worth 800 million rupees, an official said after closing the issue on the opening day yesterday. Ceylinco Insurance, a listed insurance firm, is hoping to raise 1.4 billion rupees through a follow on offer of non-voting shares which is opening on June 20.

Janashakthi offered to sell 16.5 million shares at 12.00 rupees each, with an option to sell a further 16.5 million shares.

“We expect to decide the basis of allotment this week and send out refund cheques by the end of next week,” director Ramesh Schaffter said.

“Applications collected at branch offices yesterday have been couriered to Colombo, and are still being counted.”

The company has seven working days to decide the basis of allotment but Schaffter says the firm wants to send out refund cheques quickly.

Among the large institutional investors was R G Holdings, a wealth management firm.