Prime Residencies IPO oversubscribed on opening day

Following the debut of Prime Lands Residencies’ Initial Public Offering (IPO) on May 11, the company’s oversubscription forecasts proved to be true as the initial 100 million shares were purchased in record time.

The Board of Directors have now decided to exercise the option to issue up to a maximum of a further 87.5 million shares as set out in the prospectus, the company said in a media release.

“These investors stand a dual benefit from the growth of both the real estate market, and the share market, which has also seen highly positive growth forecasts over the turn of the year – having secured returns after investing in a reputed, reliable company such as Prime Lands Residencies.

Much to the benefit of the investors, Prime Lands Residencies had offered the IPO at a 40 per cent discount allowing investors to reap a significant capital gain. The company also stated that investors will be eligible to avail a significant dividend payout of 40 per cent from the profits ending of the financial year 31st March 2021 of Rs. 975 million profits after taxes within a few months of the listing,” it said.

Prime Group is not new to the equity market or to the share market. The company’s 39 per cent stake in HNB finance and the 88 per cent stake in Prime Finance are already well known in the stock market. Prior to the IPO, the company was under sole ownership.

Commenting on this landmark achievement for Prime, Chairman Premalal Brahmanage said: “Today is a day that means many things to us at Prime Group. The oversubscription tells us that the public’s interest for our shares far exceeds the available supply. We have achieved excellence in the eyes of the public as they have recognized our solid financial performance. The over subscription is a tremendous achievement given the current pandemic situation. This speaks well of the organisation and its impression in the financial market and further booms the share market with a positive outcome. We commend and thank our investors for making a wise investment with Prime Lands Residencies. I want to say that we recognize the importance of meeting shareholder expectations, and delivering long-term shareholder value, which is fundamental for a listed company and furthermore we believe that together with investing public, we can continue to shape the nation’s horizon.”