Senkadagala Finance debenture issue oversubscribed in no time
View(s):The initial public offering of the Senkadagala Finance PLC Debenture Issuance, which was formally opened for subscription on December 6 closed on the same day, due to positive investor response.
Both the initial tranche of Rs.1 billion and the second tranche of Rs.250 million being oversubscribed in no time, the company said. A total of 147 applications were received, accumulating to over Rs.1.3 billion. The rated, subordinated, unsecured, redeemable, 5-year debenture issue, to be listed on the Main Board of the Colombo Stock Exchange, was undertaken primarily to strengthen the long-term capital base of the company in order to steadily stimulate its future growth prospects. “The basis of allotment of the debenture issue as specified in the prospectus retains preferential allotment up to 50 per cent of the issue size, being 6.25 million debentures for investors of strategic importance, who the company may partner with in their future business undertakings. The balance number of debentures will be pro-rated at the rate of 81.77 per cent among other investors, with applications up to 150,000 debentures (Rs.15 million) being allotted in full.
The issue was jointly managed by two veteran players from the investment banking services industry; Taprobane Wealth Plus (Pvt) Ltd and Capital Alliance Partners Ltd.