Shares of Capital Alliance Limited (CALT), commenced trading on the DiriSavi Board of the Colombo Stock Exchange (CSE) today and classified under the “Financials” industry group and trade under the ticker “CALT”.
The IPO was oversubscribed by 8.6 times on the opening day itself. Capital Alliance Limited received a total of over 9800 applications requesting shares for over Rs. 3.5 billion. A total of 329,417,884 shares of Capital Alliance Limited was listed on the CSE. The retail category was oversubscribed by 3.5 times in terms of the retail category allocation as 40% of the total shares on offer.
The IPO price of Rs. 10.00 comes at a 18.64% discount to the valuation price of Rs. 12.29 that was derived by the Independent Valuer Ernst & Young Transaction Services. Capital Alliance Limited offers an average dividend yield of 9.65%.
CALT has sustained an 8-year historic average Return on Equity (ROE) of 31% and an average dividend pay-out of 35%.
The funds raised via the IPO will be utilised to strengthen the core capital of the Company, thereby allowing them to invest into specific financial instruments.
Capital Alliance Limited is one of Sri Lanka’s standalone primary dealers and is a constituent of the CAL Group. Established in 2000, the CAL Group has built a reputation as a full-fledged investment bank with award-winning research and a proven management team.