SDB bank Secondary Public Offering oversubscribed

SDB bank, attracting investor attention since it was first announced, concluded its Secondary Public Offering (SPO) with a successful oversubscription of the initial issue of Rs. 3.5 billion.

This achievement rides on the bank's previous record-setting as Sri Lanka's first Colombo Stock Exchange-listed entity to host and complete a rights issue digitally, with an oversubscription,” the bank said in a media release.

"It is indeed a privilege and an honour to witness this kind of support and encouragement from our investors," said SDB bank CEO Thilak Piyadigama. "This SPO, through which we invited existing and new shareholders to join hands with the bank, was conducted to raise capital to activate several of the bank's plans to empower communities most in need of support, whilst upholding our profitability to do what's right by our shareholders. Two oversubscriptions during a pandemic is a lot to ask for, and we are truly grateful to each and every investor who has joined us in our journey of uplifting Sri Lanka's rural sector and small and medium enterprises (SMEs)," he added.

The capital raised from the SPO will be used to fuel the bank's strategic growth plan for the next 3-4 years, which includes growing its loan portfolio targeting SMEs and female entrepreneurship and providing digital banking services to Sri Lanka's rural areas, the release said.

Having gained attention and subscription offers from several local and foreign investors since it was first announced by SDB bank in April 2021, the SPO targeted to initially issue up to 68 million new ordinary voting shares to the public at a share price of Rs. 51.50 to raise up to Rs. 3.5 billion and in the event of an oversubscription of the initial issue up to an additional 20 million shares via a green shoe option bringing the total value of the SPO to Rs. 4.5 billion. This offering was the second phase of the bank's plans to power its growth trajectory, the first of which was its rights issue last year when it raised Rs. 1.5 billion.