First Capital Treasuries announces upcoming IPO
First Capital Treasuries PLC announced its Initial Public Offering (IPO), scheduled for November 2021 subject to regulatory approval.
Commenting on the launch of the IPO, First Capital Treasuries PLC Director and Chief Executive Officer (CEO) Dilshan Wirasekara stated: “The decision to list First Capital Treasuries on the Diri Savi Board is part of the company’s strategy to create liquidity for our shares, broad-base the ownership, and further enhance our brand identity. We invite the public to subscribe for shares of First Capital Treasuries as we look ahead to further enhance our position in the government securities arena.”
Accordingly, the First Capital Treasuries’ IPO aims to offer 7,695,000 ordinary voting shares to the public. The IPO price per share of Rs. 39.00 offers an immediate upside of 15% to 19% to an incoming investor, given the value range of Rs. 46.00 to Rs. 48.00 per share; derived as per the independent valuation carried out by E&Y Transaction Advisory Services (Pvt.) Ltd. The issue is managed by the Corporate Finance Division of First Capital Ltd.
Established in 1982, First Capital Treasuries boasts a history as a licensed primary dealer appointed by the Central Bank of Sri Lanka (CBSL) to deal exclusively in government securities. Presently, the company is the market leader amongst non-bank primary dealers with a capital base of Rs. 4.5 billion as of 30 June 2021. The company continued to account for the highest amongst non-bank primary dealers raising debt for the Government, taking up as much as 18% of the total issuance of treasury bonds among all primary dealers in 2020. First Capital Treasuries PLC is a subsidiary of First Capital Holdings PLC, a member of the Janashakthi Group.