ECONOMYNEXT – The Janashakthi Group (JXG) initial public offering (IPO) to raise 5 billion rupees was oversubscribed by about three times, the company said, with 243,000,000 shares, representing 48.6 percent of the total issue, allocated to strategic investors on a preferential basis.
The offer, which consisted of 500,000,000 new ordinary voting shares priced at 10 rupees each, attracted 20,359 valid applications.
Investors applied for a total of 1,515,524,200 shares, representing a cumulative value of over 15.15 billion rupees.
According to the basis of allotment released by the company, 243,000,000 shares, representing 48.6 percent of the total issue, were allocated to strategic investors on a preferential basis.
This allocation was made within the Non-Retail category, which was originally assigned 325,000,000 shares in the prospectus.
A review of the prospectus indicates that while it granted the Board discretion to decide the allotment basis in a “fair and equitable manner” in the event of oversubscription, it did not explicitly pre-define a preferential allocation for strategic investors.
Prospectus
Other applicants in the Non-Retail category were allotted a minimum of 4,000 shares, plus 9.6365 percent of any applied quantity exceeding that amount.
The allotment for remaining categories was determined as follows: Retail Individual Investors (minimum of 4,000 shares and 17.45625 percent of the applied quantity above that minimum), Unit Trust Investors (minimum of 500,000 shares and 65.0636 percent of any applied quantity over that level), Janashakthi Group Employees (100 percent of their applied quantity up to 500,000 shares, and 33.7879 percent for shares exceeding that amount).
The group intends to utilize the proceeds for three primary objectives:
– 3.5 billion rupees for expansion across insurance and non-bank financial services,
– 0.5 billion rupees for regional expansion into East and Southern Africa as well as Southeast Asia,
– and 1 billion rupees for debt optimization.
Janashakthi Group, a diversified financial services conglomerate, is the parent company of Janashakthi Insurance PLC, First Capital Holdings PLC, and Janashakthi Finance PLC. (Colombo/Apr22/2026)