Chrissworld IPO oversubscribed; raises Rs. 56.25 million

By Hiran H.Senewiratne 

The CSE approved an application submitted by Chrissworld Ltd. for the listing of its ordinary voting shares by way of an offer for subscription and the Initial Public Offering (IPO) was oversubscribed yesterday.

This is a distinct IPO as it is the first company to be listed on the Empower Board of the CSE being the smallest IPO in the country. Under this IPO 7.5 million shares were oversubscribed and  a share was quoted at Rs. 7.50. The IPO raised Rs. 56.25 million, stock market analysts said.

CSE also approved an application submitted by Prime Lands Residencies Limited, for the listing of its Ordinary Voting Shares by way of an offer for subscription. The company will be listed on the Diri Savi Board (or Main Board as relevant) of the CSE subject to compliance with the CSE Listing Rules and Securities and Exchange Commission of Sri Lanka (SEC) Directives (as applicable).IPO is due to be opened on May 11, 2021.

The company will be Offering for Subscription of 100,000,000 new Ordinary Voting Shares of the Company at Rs. 10.40 with an option to issue a further 87,500,000 Ordinary Voting Shares of the Company at Rs. 10.40 per share. Initial Public Offering (IPO) is held to raise a total sum of Rs. 1.04 bn. with an option to raise a further Rs. 910 million in the event of an oversubscription.

Minimum subscription per Application is 1,000 Shares (Rs. 10,400/-). Applications exceeding the minimum subscription should be in multiples of 100 shares and each successful application shall receive the minimum subscription.

Amid those developments, CSE activities were negative throughout the day due to panic selling that resulted in forced selling of shares due to spread of Covid 19 third wave, stock market analysts said. Two weeks ago the market reached 7644 points and yesterday touched 7066 points down, which was a 600 point market loss, market analysts said. 

During the day, both indices moved downwards. All Share Price Index went down by 165.95 points and S and P SL20 declined by 68.9  points. Turnover stood at Rs. 1.95 billion without a single crossing. In the retail market, top five companies that contributed to the turnover were, Royal Ceramic Rs. 273.6 million (8.7 million shares traded), Browns Investments Rs. 202.5 million (33.4 million shares traded),Dipped Products Rs. 157.3 million (three million shares traded). Expolanka Rs. 147.3 million (3.3 million shares traded) and Hayleys Fabrics Rs. 135.7 million (7.8 million shares traded). During the day 105.7 million share volumes changed hands in 22683 transactions.