JAT Holdings commences trading

  • Closes first day at Rs. 24.20 

JAT Holdings Limited (JAT-N-0000) commenced trading on the Main Board of the Colombo Stock Exchange (CSE) yesterday (12). The company listed 510,407,773 ordinary voting shares and has been classified under the industry group “Materials (1510)”. The company closed trading yesterday itself, at Rs. 24.20. 

The Initial Public Offering (IPO) of 82,904,846 ordinary voting shares by way of a combination of an offer for subscription and an offer for sale at the CSE was opened on 20 July 2021 and was oversubscribed on the initial day itself. The said issue by JAT Holdings Limited received applications for over Rs. 2.2 billion. The joint financial advisers and managers to the offer were CAL and NDB Investment Bank Limited. 

Commenting on the listing, CSE Chairman Dumith Fernando congratulated the company: “We are pleased to welcome JAT Holdings Limited as the fourth equity listing on the CSE for the year 2021. The CSE is honored to be facilitating JAT’s capital requirements for the company’s expansion projects in their objective of adapting to global trends and needs.” 

JAT Holdings Limited Founder, Managing Director, and Executive Director Aelian Gunawardene welcomed the new shareholders to the company and added: “‘A journey of a thousand miles begins but with a single step.’ Following the observation of the ancient Chinese philosopher Lao Tzu, 28 years ago I embarked upon one such journey, founding JAT Holdings. The milestones I have passed along the way are many, however, the listing of the company on the CSE has been one of our team’s top achievements. This has been a coveted goal since we embarked on our first round of private placements in 2014. 

“It is with great pride that I announce that we have already set out to fulfil, far ahead of schedule, the commitments made to our trusted shareholders by securing the required premises and factory for manufacturing purposes in Bangladesh and shipping out the required machinery. Further, we have just purchased the required land to build our state-of-art R&D centre. As a result, the revenue, and subsequent targets from manufacturing and R&D given in our prospectus can now be brought forward.” 

JAT Board of Directors Chairman Dr. Siva Selliah thanked all who have assisted JAT on this journey. Those included, joint financial advisers and managers to the offer CAL and NDBIB, the secretaries to the issue, JAT CEO Nishal Ferdinando, the entire team at JAT, and all shareholders who have shown unstinting faith in the company.

Commenting on the listing of JAT Holdings Limited, CAL Global Markets and Investment Banking Managing Director Deshan Pushparajah remarked: “As the undisputed giant in the wood coatings space in Sri Lanka, Bangladesh, and the Maldives, JAT is a shining example of how Sri Lankan businesses can compete and succeed on the global stage. CAL is proud to have partnered with JAT on this landmark IPO as Joint Financial Advisor and Manager to the offer. We wish to congratulate JAT on its trading debut and wish the leadership team the very best for the future.” 

NDB Investment Bank Limited Director and CEO Darshan Perera added: “The IPO of JAT was a novel offering to the market in that it was the first paints and furnishing company to list on the CSE. It is indeed a positive development to see promoters who have built solid businesses opting to list on the CSE and share their growth stories with the investing public. We at NDBIB are honoured to have partnered with JAT on this milestone event as Joint Financial Advisor and Managers to the Offer and I wish JAT all the very best in its future growth prospects as a listed entity on the CSE.”