Sanasa Development Bank announces secondary public offering of its shares

By Hiran H.Senewiratne 

Sanasa Development Bank has announced a secondary public offering of its shares subject to certain terms and conditions. Under this the company will issue 88 million new  shares to the public to raise Rs 4.55 billion to meet capital requirements and  to expand its operational activities, stock market analysts said. 

Accordingly, out of the total shares 50 percent has been allocated for identified investors, 37.5 percent for existing investors and the balance for the other interested parties. Its share price has been valued at Rs. 51.50.

Meanwhile, the stock market witnessed some selling pressure in the early part of yesterday due to the fluctuation of LOLC Development Finance share price. Due to selling pressure its share price was more subdued than on the previous day which created a negative impact on the market. However, during the latter part of the day LOLC Development Finance share price appreciated by 25 percent or Rs 64. Its share price started trading at Rs 256.25 at the end of the day and it shot up to Rs 325.25.

Amid those developments, both indices moved downward. All Share Price Index was down by 1.57 points and S&P SL20 down by 2.05 points. Turnover stood at Rs 1.55 billion sans a single crossing.

In the retail market, the top five companies that mainly contributed to the turnover were Expolanka Rs 139.2 million (2.8 million shares traded), Commercial Bank Rs 124.8 million (1.4 million shares traded), LOLC Rs 103.6 (258,000 shares traded), HNB (Non Voting) Rs 83.6 million (762,000 shares traded) and Dipped Products Rs 80.5 million (1.55 million shares traded).

Two companies, mainly Bukit Darah and Carsons, witnessed a drop in their prices after making an announcement that both companies had no price sensitive information. Carson’s share price depreciated  by 14 percent or Rs 50.50. Its share price started trading at Rs 355.50 and at the end of the day it had come down to Rs 305 and Bukit Darah share price depreciated by 13 percent or 44.50. Its share price started trading at Rs 360.50 and at the end of the day it pulled down to Rs 315.

During the day 62.2 million share volumes changed hands in 19575 transactions.