HNB FINANCE Ltd IPO oversubscribed

HNB FINANCE Ltd, a licensed finance company, said on Monday that its Initial Public Offering (IPO) for sale at the Colombo Stock Exchange (CSE) has been oversubscribed. 

In a media release, the company said 10 million Ordinary Voting Shares at Rs. 5.70 each were offered through the IPO while the company is also listing Ordinary Non-Voting Shares at Rs. 4.20 per share by way of an Introduction in the CSE. 

“As anticipated, the offer was oversubscribed, signaling the trust that investors place on us. This positive response also indicates the country’s current investor friendly environment. We expect to ensure attractive returns to our investors, perhaps even exceeding their expectations,” said Chaminda Prabhath – Managing Director/CEO – HNB FINANCE Ltd. 

Commenting on the success of the offer,  Ray Abeywardena, Managing Director of Acuity Partners (Pvt) Ltd who acted as Managers and Financial Advisors to the offer stated that “we are extremely pleased with a near 32 per cent oversubscription on the opening day of this highly anticipated IPO which incidentally is the first IPO in two years. The high retail participation in the IPO is an indication of the overall investor confidence towards the future prospects of HNB Finance Ltd”.   

HNB FINANCE Ltd is a subsidiary of Hatton National Bank PLC, which owns 51 per cent of the shares while Prime Lands (Pvt) Ltd will own 38.86 per cent of the shares subsequent to the completion of the IPO.  (DEC)