Free Lanka Capital Holdings IPO
Free Lanka Capital Holdings (FLCH), one of the country’s largest tea and rubber producers and owning a large land base in Colombo, is offering 300 million of its shares at Rs 5.00 per share to the public to raise Rs 1.5 billion.
Free Lanka Capital Holdings, a group that has business interest in plantations, hydro power, leisure and property development sectors has completed a private placement for 700 million rupees
Who are the main shareholders of Free Lanka Capital Holdings?
Browns Investments.
Perpetual Capital.
The Assets of Free Lanka Capital Holdings.
57,000 Acres of land across the country.
9,200 Acres of land in the district of Colombo.
19,000 Acres of tea .
13,000 Acres of rubber .
3,500 Acres of commercial timber.
The company that has interests also in property development, leisure and hydro power generation and Hydro Power Free Lanka is an already listed in CSE. 3.2 Megawatt hydro power generated presently and 15 Megawatt hydro power in the pipe line. Free Lanka Capital hold controlling interest in both Maturata Plantations & Pussellawa Plantations.
Established in 1992, the group is a 6 billion-rupee annual turnover entity with a 10.5 billion-rupee group net asset value. Free Lanka Capital Holding showed a Rs 975 Million group net profit for 9 months to end December 2010.
The summery of Free Lanka Capital Holdings IPO.
Issue Opening Date
17th March, 2011.
Total quantity offered.
Minimum subscription.
2000 shares and if applied more than 2000 should be in in multiples of 1000 shares.
Total issued number of shares after IPO.
Allotment.
The Board of Directors of FLCH intends to distribute 300 million shares between two investor categories namely Retail and Non Retail. For both categories reserved 150 million shares each. Investors applied up to 10,000 shares (including 10,000 shares) will be deemed as retail investors.
This is only a summary, please read the prospectus before you make any investment decision. You can download Free Lanka Capital Holdings IPO Prospectus and Application forms using below web address.
Prospectus
http://www.cse.lk/270808/pdf/FLC_Prospectus.pdf
Application form
http://www.cse.lk/270808/pdf/FLC_Application.pdf
As all recent IPOs, FLCH IPO too not undervalued. Companies always try to collect maximum amount when IPO market performs well. But with the current trend in Colombo Stock Exchange you will be able to make some money with relatively low risk.
Source – Free Lanka Capital Holdings Prospectus.
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Filed under: Colombo Stock Exchange • cse • IPO • Sri Lanka
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admin what you think about this ?
im new to stock market and want to know more before venture .
thanks
@ Anonymous,
IPO is good way to start investing in stocks. Despite you can't expect huge gain with FLCH IPO you can have a profit. If you wish try it.
There will be more IPOs in coming months.
i got a problem,
all the people want to sell and look for new IPO,
so who will buy IPO shares
@ shashika,
Good question! There are investors who invest for long term so they will collect on opening day if they think price is OK.
Day traders too try to make some cash on fist day trading of stocks buying low and selling marginally higher on same day.
admin,
will the japan crisis effect sri lanka,seems all the stock markets around the world is suffering (i mean low)
@ shashika,
I don't think Japan crisis will cause major impact on CSE because our market mostly driven by local investors.Market is already facing a correction due to over heating in some stocks.
well we can't predict as to how, this particular IPO would react once it comes into this market. it is anticipated that the share could rise or fall. it's a fifty fifty chance. anyways lets invest and see what happens.
experts say that the stock market will boom by the beginning of June. Lets hope for the best.
Cheers.
about CSE stability ,will so much IPO coming will effect it to CSE stability as so much people try for future gains
More IPOs are good for the CSE growth. People will have more to choose rather than buying and selling few selected stocks.
India's BSE has about 5000 listed companies.
IPO's are generally supposed to be a much viable and healthier investment.
As per anonymous your question was, whether the CSE would fall if IPO's come in and the market would fall due to day trading. However that is not true!!! The thing is when you purchase shares from an ipo and try trading it,within the day of issue, the CSE gets involved and retains the share capital you have invested despite the profitability which you will gain. For example : you purchase 100,000 shares at the price of Rs.5 = Rs.500,000/= thereafter once the IPO is in the market lets assume the share price to be Rs.7. Which means the total gain including the share capital + Profit = Rs.800,000/= . There is a profitability of Rs.300,000 which you will receive as profit if you trade in the shares. However the share capital invested Rs.500,000 would be retained in the CDS account and you wont be able to withdraw that ammount if the market is not performing well.However you can purchase other stocks worth of Rs.500,000 or wait until the CSE grants permission to withdraw the Rs.500,000.
If am wrong somewhere , you can correct me.
@az,
"There is a profitability of Rs.300,000 which you will receive as profit if you trade in the shares. However the share capital invested Rs.500,000 would be retained in the CDS account and you wont be able to withdraw that ammount if the market is not performing well.However you can purchase other stocks worth of Rs.500,000 or wait until the CSE grants permission to withdraw the Rs.500,000. "
I can't understand above. Why CSE hold our money if market is not performing well? We should receive it on settlement day regardless market trend. Is it new rule?
Please explain it.
Thanks.
what a heck is az talking??
admin please explain
@ Anonymous,
Actually I am waiting for az reply to Hiran.
As far as I know CSE or CDS will not hold any profit or capital. It will be paid on exact settlement day.
There is no any connection with settlement of sales proceeds and market direction.
BASIS OF ALLOTMENT – FREE LANKA CAPITAL HOLDING LIMITED
When is FLCH actually going to be listed on the CSE? Can someone give me an exact date please.