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Hela Apparel IPO oversubscribed by 5.4 times

27 Jan 2022

Hela Apparel Holdings (the holding company of the Hela Clothing Group) made history this month with the successful oversubscription of the largest initial public offering (IPO) in the past decade.  Having raised its target of Rs. 4 billion, Hela now looks to the future as it gears up to set further milestones. Expressing his sentiments, Hela Apparel Holdings Chairman A.R. Rasiah said: “As a social capital-focused company, we are honoured and humbled to have the trust of the Sri Lankan people. We have already started on the work that we believe will give Hela a competitive advantage in the long term. We thank everyone for their participation in this IPO and welcome them to join us on a journey of global value creation.”  The IPO, which sought to raise Rs. 4 billion through the issue of new shares, was oversubscribed by 5.4 times and received applications amounting to Rs. 21.8 billion. A total of 23,205 applications were received from investors, a record number for any IPO in the past 10 years. The offering was well received by a range of investors, including foreign, institutional, local high-net worth, and retail investors, and was oversubscribed in all investor categories. 15,706 applications worth Rs. 3.1 billion were received through the online application portal alone, yet another new record. Jointly managed by CT CLSA Securities (CT CLSA) and Capital Alliance Ltd. (CAL), the issue witnessed a 20.5% stake in the company or 267,108,998 ordinary voting shares being offered to the public at a per share price of Rs. 15.  The proceeds of the IPO are intended to be channelled towards boosting supply chain security through an investment in a fabric mill, strengthening core digital systems through the implementation of a new enterprise resource planning (ERP) system, productivity-enhancing capex, and strengthening the company’s balance sheet to support its global expansion strategy. Hela is guided by an experienced and diverse management team and operates across six countries of origin, while generating revenues exclusively in US dollars.


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