Finance Demand

Mar 31, 2010 (LBO) – An initial public offering (IPO) by Sri Lanka’s Vallibel Finance to raise 114.4 million rupees has been oversubscribed and will close Wednesday afternoon, a stock exchange filing said. The firm offered 5.2 million shares at 22 rupees each.

The stock exchange filing said applications for 8,310,900 shares were received, amounting to about 183 million rupees.

The Vallibel group of entrepreneur Dhammika Perera sold down a 25 percent stake through the IPO in the Colombo Stock Exchange’s main board.

The IPO will bring the total share issue up to 20.2 million shares, reducing Vallibel Holding’s stake to 75 percent.

The IPO was to raise funds to reduce financing costs and expand leasing and hire purchase businesses and its branch network.

The firm has said it plans to open two more branches in Pelmadulla and in Kandy in the central hills.