First Capital Treasuries’ IPO on December 6
One of Sri Lanka’s leading non-bank primary dealers, First Capital Treasuries PLC announced an IPO scheduled for December 6, 2021.
The IPO will see First Capital Treasuries offering 7,695,000 ordinary voting shares at Rs. 39 per share to the public, for a listing on the DiriSavi Board of the CSE. An independent valuation by E&Y Transaction Advisory Services (Private) Limited has valued the shares between Rs. 46 to Rs. 48 per share. This translates into projected gains of 15% to 19% on the offer price to anyone investing in the Company through the IPO. The Issue is managed by the Corporate Finance division of First Capital Limited.
First Capital also hosted prospective investors, industry partners, media representatives and members of the public at an investor forum on its upcoming Initial Public Offering (IPO).
First Capital Treasuries released the official prospectus for the IPO at this event. Approved and published by the Colombo Stock Exchange (CSE), it sheds light on the company’s consistent performance and elaborates on how it seeks to broaden its ownership base, bring in more liquidity, and strengthen its brand identity through this listing.
“Government securities are the largest and most liquid asset class in the country. Given the sector’s high entry barriers, viz., considerable financial strength and sound domain knowledge, we have only 10 licensed primary dealers operating in Sri Lanka. First Capital Treasuries holds a distinctive position as a non-bank primary dealer.Playing a pivotal role as a market maker for treasury bills and bonds, we have been able to successfully deliver a 5-year average Return on Equity of 29% and a 10-year Dividend pay-out of 50%,” said Dilshan Wirasekara, Director / Chief Executive Officer, First Capital Treasuries PLC.
“As we endeavor to continuously strengthen our position in this segment further, we believe that the IPO will help us welcome a broader base of investors, gain added liquidity and bolster our brand image,” he added.