The Employees’ Trust Fund (ETF) will invest in Seylan Bank’s Rs 3 billion capital raising exercise, according to sources close to Seylan.“There are other state institutions such as the Employees’ Provident Fund which will also come in,” a source said. Seylan’s initial public issue of 86 million ordinary shares at Rs 35 each in a one-for-two to Seylan’s existing shareholders was launched early this month.
The public offering is for 54,290,000 Ordinary (voting) shares with preference being given to existing ordinary (voting) shareholders to subscribe for a minimum of one share for every two held. As at Thursday, Seylan had received 1,403 applications with 30,438,874 shares being applied. Seylan had also decided on a private placement of 32,150,000 new Ordinary (voting) shares of Rs 35 each comprising 24.7 percent of the increased capital.
The Bank of Ceylon will be issued 13 million shares and Sri Lanka Insurance Corporation 19.15 million shares. The source said that Seylan Bank now has Rs 22.5 billion stated capital and during the past two months has secured more than Rs 5 billion in deposits. |
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