ECONOMYNEXT – NDB Capital Holdings Limited (NCAP) will take up part of the Initial Public Offering of RIL Property Limited (RIL), the owner and operator of commercial office space in the Sri Lankan capital Colombo, which opens next week.
According to the prospectus, NCAP has been identified by RIL as a Cornerstone Investor for the IPO at the issue price of 8 Rupees a share.
RIL intends to offer 120 million ordinary voting shares in the IPO opening on April 4, 2017, to raise 960 million Rupees.
NCAP has committed to subscribe for up to 25,000,000 shares amounting to 200 million Rupees via the Non-Retail Investor Category of the IPO.
RIL has agreed to ensure that NCAP is allotted a minimum of 15,000,000 shares amounting to 120 million Rupees.
In the event of an oversubscription, this would result in NCAP being allocated 12.50 percent of the total shares issued via the IPO and having a shareholding of 2.50 percent of RIL.
In the event of an undersubscription, NCAP would be allocated 25,000,000 shares amounting to 40.00 percent of the total shares issued via the IPO and would have a 4.61 percent shareholding in the company.
NCAP has voluntarily undertaken not to sell the shares for six months starting from the listing date.
NCAP is the parent company of NDB Investment Bank Limited, joint managers to the issue.
In the event of an undersubscription, Commercial Bank of Ceylon, the IPO underwriter, will subscribe up to a maximum of 37,500,000 shares at the offer price amounting to a total value of 300 million Rupees, 31.25 percent of the total IPO and 6.25 percent of the total shares of the company post-IPO.
(COLOMBO, March 30, 2017)