WindForce IPO oversubscribed, stocks close higher

By Hiran H.Senewiratne 

WindForce, Sri Lanka’s largest and most diversified renewable energy company, launched its highly-anticipated Initial Public Offering (IPO) for subscription yesterday, with the aim to raise Rs. 3.2 Bn, and it was oversubscribed within hours on the first day itself.

As the largest IPO on the Colombo Stock Exchange (CSE) in 9 years, there was a high demand for the IPO amongst investors keen to be part of the success story of the largest Independent Power Producer in Sri Lanka – with 27 power plants in Sri Lanka and overseas, as it charts greater growth and expansion.

Meanwhile, share trading at CSE closed higher yesterday. Both indices moved upwards. All Share Price Index up by 156.5 points and S and P SL20 up by 69.29 points. Turnover stood at Rs 1.56 billion without a single crossing. In the retail market top five  contributing companies were Explanka Rs 202.2 million (4.5 million shares traded), JKH Rs 185 million (1.2 million shares traded), Browns Investments Rs 154.2 million (30.2 million shares traded), Dipped Products Rs 135.2 million (2.9 million shares traded) and Sampath Bank Rs 100.2 million (1.88 million shares traded). During the day 67.4 million share volume changed hands in 17,708 transactions.

During the trading time buying interest was witnessed in fundamentally strong stocks on speculation and those companies were JKH, Sampath Bank, Melstacope and several other companies. Major companies that mainly contributed to the All Share Price Index were Browns Investments, LOLC, Expolanka, Sampath Bank Commercial Leasing. Those five companies contributed 60 points to the All Share Price Index. Further, financial sector counters show some appreciation of its share.