Windforce’s Rs.3.2 billion IPO oversubscribed eight times

By Hiran H. Senewiratne 

Windforce Ltd.’s Initial Public Offering (IPO) worth Rs. 3.2 billion, the biggest in nine years, has seen an over-subscription of eight times, triggering a demand worth nearly Rs. 26 billion, preliminary figures indicate. 

The company hasn’t formally revealed the final over-subscription amount but the capital market was abuzz about the success of the IPO over the weekend, informed sources said.

1,700 applications requested for shares worth Rs. 25.7 billion, which was believed to be an over-subscription of  eight times, which has positively impacted the stock market, market analysts said.According to stockbrokers, Sri Lanka’s biggest and fastest growing producer of renewable energy, Windforce IPO offered a 15 percent  stake or 202,615,341 new ordinary voting shares of par value of Rs. 10 at Rs. 16 each. The previous biggest IPO in recent years was that of People’s Leasing (PLC) worth Rs. 7 billion in 2012.The issue officially opened on March 24 and was closed the same day. It had been available for subscription since March 2. Brokers to the issue were CT CLSA Holdings and Capital Alliance while several other brokers recommended the IPO to investors, given the company’s performance and future outlook as well as the growing demand for and reliance on renewable energy locally and globally.

Amid those positive signals, the CSE, during the first half an hour yesterday was a bit negative but thereafter the market became green and showed some bullish trend at the end of the day, stock market analysts said. 

According to stock market analysts, overall the market was bullish. Buying interest was visible especially for banking sector counters, mainly for HNB (voting and non voting), Sampath Bank, Commercial Bank and several listed banks.

Both indices moved upwards. The All Share Price Index went up by 30.30 points and S and P SL20 rose by 19.28 points. The turnover stood at Rs. 2.18 billion with four crossings. Those crossings were reported in HNB (Voting), 4.3 million shares crossed to the tune of Rs. 561 million, its shares traded at Rs. 128, Commercial Bank 5.4 million shares crossed for Rs. 480 million, its shares traded at Rs. 88, JKH 177,000 shares crossed for Rs. 26.4 million, its shares fetching Rs. 149.25 and HNB (Non Voting) 219,000 shares crossed for Rs. 21.9 million, its shares traded at Rs. 100.

In the retail market top five companies that mainly contributed to the turnover were HNB (Non Voting) Rs. 133 million (1.3 million shares traded), Expolanka Rs. 131 million (2.9 million shares traded), JKH Rs. 120 million (808,000 shares traded), Dipped Products Rs. 105 million (2.2 million shares traded), Browns Investments Rs. 87.9 million (15.8 million shares traded) and Sampath Bank Rs. 69.5 million (1.2 million shares traded).During the day 58.1 million share volumes changed hands in 11842 transactions.

Top contributors to the All Share Price Index were Ceylinco Insurance 6.28 points, Commercial Bank 5.54 points, Aitken Spence 2.79 points, Expolanka 2.69 points.

Sri Lanka’s rupee quoted weaker at 199.50/200 to the one week US dollar on Monday, while yields remained unchanged in a dull market ahead of the 60 billion bond auction, dealers said. The rupee last closed in the one-week forward market at 199.25/75 to the US dollar on Friday.