Prime Residencies announces basis of share allotment, stocks end higher

By Hiran H. Senewiratne

Leading real estate company Prime Residencies whose Initial Public Offering (IPO) was oversubscribed recently, has announced the basis of share allotment to the public, stock market analysts said yesterday.

“Prime Residencies’ IPO was intended to issue 187.5 million shares at Rs 10.40 per share to  raise Rs 1.95 billion however, it was oversubscribed and 216 million shares were issued to the public. In this backdrop, investors who applied up to 10 million shares would be allotted in full and other prospective shareholders who applied more than 10 million shares would be allotted 14% on top of the 10 million shares.”

“Hence the company would be able to raise Rs 2.25 billion. Amid this development, trading activities at CSE were retarded till 12.00pm as two index heavy companies mainly; Brown Investments and LOLC witnessed some dip in trading, but nevertheless, in the later part of the day buying interest was noted. As a result, market turned positive and investors  were  attracted  to  other  stocks  as well”, stock market analysts said.

During the day  both indices showed upward trend. All Share Price Index was up by 9.69 points and S and P SL 20 up by 1.41 points.

Turnover stood at Rs 1.33 billion without a single crossing. In the retail market the  companies that mainly contributed to the turnover were Browns Investments Rs 249.5 million (39.6 million shares traded ),Royal Ceramics Rs 121.6 million (3.3 million shares traded),Lanka Walltiles Rs 76.1 million (1.5 million shares traded),Expo Lanka Rs 70.4 million (1.6 million shares traded), Dipped products Rs 69.4 million (1.3 million shares traded) and Dialogue Rs 61.1 million (5.2 million shares traded).

During the day 101 million shares changed hands in 17,399 share transactions.