Sri Lanka’s People’s Insurance Rs750mn IPO oversubscribed
ECONOMYNEXT – An initial public offer by Sri Lanka’s People’s Insurance Plc, a unit of listed People’s Leasing, of 50 million shares at 15 rupees each to raise 750 million rupees was oversubscribed on the opening day itself.
There was “strong individual and institutional investor interest” in the IPO, a statement said.
“Healthy demand was witnessed across all investor categories with a strong institutional order book,” it said.
People’s Insurance Plc gets captive motor business from its parent, People’s Leasing, which is Sri Lanka’s largest non-bank lender.
People’s Insurance raised the funds with the objective of strengthening its capital base to support its medium to long term growth strategy, the statement said.
The company is the first general insurer to list on the Colombo Stock Exchange among those companies required to list on the exchange as required by the Insurance Board of Sri Lanka and new industry legislation.
“People’s Insurance will be the first pure-play general insurance company to be listed on the CSE,” the statement said.
“The company intends to further penetrate its bancassurance channels and non-captive retail business in the future,” said Jehan Amaratunga, Chairman of People’s Insurance.
NDB Investment Bank, Acuity Partners and People’s Bank – Investment Banking Unit were the Joint Financial Advisors and Managers to the IPO. (Colombo/December 16, 2015)