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Capital Alliance begins trading today 

a year ago

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Shares of Capital Alliance Ltd. (CALT) will commence trading on the Diri Savi Board of the Colombo Stock Exchange (CSE) today (15). It will be classified under the “Financials” industry group and trade under the ticker “CALT”. The initial public offering (IPO) was oversubscribed by 8.6 times on the opening day itself. CALT received a total of over 9,800 applications requesting shares for over Rs. 3.5 billion. A total of 329,417,884 shares of CALT will be 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. CALT offers an average dividend yield of 9.65%. CALT has sustained an eight-year “historical” 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.  CALT 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. 

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