Sri Lanka Textured Jersey IPO oversubscribed by three times

July 18, 2011 (LBO) – Sri Lankan fabric supplier Textured Jersey Lanka’s initial public offer of 80 million shares to raise 1.2 billion rupees drew applications for thrice as many shares worth almost 3.7 billion rupees. The regulators moved after complaints small investors were being edged out by the use of bank guarantees.

A separate stock exchange filing said all retail investors who applied for up to 6,600 shares were given all the shares they asked for along with unit trusts and employees who applied for up to 500,000 shares.

Employees who applied for more were allocated 500,000 plus 57.32 percent of the balance applied for.

In the non-retail category, applicants for up to 100,000 shares were given all they asked for while those who applied for more will get 100,000 plus 12 percent of the balance asked for.

The balance shares in the retail and unit trust category were allocated to the non-retail category, the statement said.

Updated Applications with bank guarantees only slightly exceeded those with bank drafts and cheques in the number and value of shares applied for, according to a stock exchange filing.

The company got 16,904 applications with payment made by bank draft a