Sri Lanka power IPO gives small investors preference

Sept 24, 2009 (LBO) – Small investors who applied for up to 500 shares in an initial public offering by Sri Lanka’s Hemas Power will be given their full allotments, according to a stock exchange filing. NDB Investment Bank, which handled the issue, said they had got 2,582 applications up to and inclusive of 500 shares for 779,400 shares at 20 rupees each.

These investors would be allotted all shares applied for.

The IPO for 31.3 million shares by Hemas Power attracted applications worth over 2.28 billion rupees.

NDB Investment Bank said they had got 5,770 applications for over 500 shares amounting to over 110 million shares.

These investors would be given a minimum allotment of 500 shares, plus 25.70 percent of the shares applied over and above 500 shares rounded to the nearest 100 shares.

Hemas Power, a unit of listed Hemas Holdings, supplies power to state-run Ceylon Electricity Board and is raising cash to increase renewable energy generation.

Corrected – Total application value of 2.28billion rupees