First Capital Treasuries Apprises Stakeholders of Upcoming IPO

One of Sri Lanka’s leading non-bank primary dealers, First Capital Treasuries PLC, a subsidiary of the Janashakthi Group’s First Capital Holdings PLC hosted prospective investors, industry partners, media representatives and members of the public at an investor forum on its upcoming Initial Public Offering (IPO).

First Capital Treasuries released the official prospectus for the IPO at this event. Approved and published by the Colombo Stock Exchange (CSE), it sheds light on the company’s consistent performance and elaborates on how it seeks to broaden its ownership base, bring in more liquidity, and strengthen its brand identity through this listing. The prospectus is available online on the websites of both CSE and First Capital.

Scheduled for 06 December 2021, the IPO will see First Capital Treasuries offering 7,695,000 ordinary voting shares at Rs. 39.00 per share to the public, for a listing on the Diri Savi Board of the CSE. An independent valuation by E&Y Transaction Advisory Services (Private) Limited has valued the shares between Rs. 46.00 to Rs. 48.00 per share. This translates into projected gains of 15% to 19% on the offer price to anyone investing in the Company through the IPO. The Issue is managed by the Corporate Finance division of First Capital Limited.

“Government securities are the largest and most liquid asset class in the country. Given the sector’s high entry barriers, viz., considerable financial strength and sound domain knowledge, we have only 10 licensed primary dealers operating in Sri Lanka. First Capital Treasuries holds a distinctive position as a non-bank primary dealer. Playing a pivotal role as a market maker for treasury bills and bonds, we have been able to successfully deliver a 5-year average Return on Equity of 29% and a 10-year Dividend pay-out of 50%,” said Dilshan Wirasekara, Director / Chief Executive Officer, First Capital Treasuries PLC.

“As we endeavor to continuously strengthen our position in this segment further, we believe that the IPO will help us welcome a broader base of investors, gain added liquidity and bolster our brand image. We invite the public to avail themselves of this opportunity to partake in the ownership of a licensed primary dealer like First Capital Treasuries,” he added.

Established in 1982, First Capital Treasuries boasts of an illustrious history. It is the oldest non-bank primary dealer licensed and appointed by the Central Bank of Sri Lanka to deal exclusively in Government Securities in operation. Over the years, the Company has built a strong base of clients from across diverse segments and industries.

While ratings agency ICRA Lanka Ltd. had assigned a credit rating of [SL] ‘A’ Stable outlook to First Capital Treasuries, making it the non-bank primary dealer with the highest rating.

First Capital Treasuries’ outstanding performance and rating are a result of the strong financial acumen and relentless efforts of its team members as well as the expert advice and governance of its Board of Directors comprising of experienced professionals from diverse backgrounds.

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