Following a successful Initial Public Offering (IPO), JAT Holdings Limited commences trading of shares today (12).
Oversubscribed on the first day, the JAT IPO raised Rs. 2.2 billion by offering 82,904,846 ordinary voting shares to the public. The IPO price per share stood at Rs. 27.00 and offered an immediate upside of 21% to an incoming investor on the value per share of Rs. 32.70 – derived from a combination of discounted cash flow (DCF) and forward-earnings ratio (PER) valuation methods. The IPO largely comprised of foreign investors, local institutional investors and high net-worth individuals (HNIs), keen on making mid-long term investments. The company also intends to maintain a minimum dividend payout ratio of 40% post-IPO.
“We are honoured to state that JAT is the only Company on the Colombo Stock Exchange entrenched in this industry and can ensure our shareholders enjoy great returns in the short and long term,” commented Aelian Gunawardene – Founder & Managing Director of JAT Holdings Ltd.
Proceeds from the IPO have been allocated towards enhancing the firm’s existing R&D facility, expanding the WHITE by JAT marketing and development initiatives and the establishment of a manufacturing facility in Bangladesh and East Africa. Fulfilling its near term objectives, the company has already initiated the acquisition of land and commissioning of building its new state-of-the-art R&D facility.