November 23, 2021: Capital Alliance Limited (CALT) will list its equity shares on the Colombo Stock Exchange (CSE) via an Initial Public Offering tomorrow. The CALT IPO has gained significant traction and is highly anticipated by investors.
CALT offers 41,177,236 ordinary shares for a 12.5% stake to the public, priced at LKR 10 per share. The IPO price per share provides a discount of 18.64% to an incoming investor compared to the Rs.12.29 price per share derived by the Independent Valuer, Ernst and Young Transaction Advisory Services.
An attractive average dividend yield of 9.65% encourages investors to hold the share for the longer term. The proceeds raised via the IPO will be utilised to strengthen the Company’s core capital, allowing CALT to expand its investments into a range of specific financial instruments. Capital Alliance Partners Limited is the Manager and Financial Advisor to the issue.
CALT is one of the five non-Bank Primary Dealers in the country. It forms the Securities Trading arm of the wider Capital Alliance Group (CAL), which deals in an array of Government Securities and Corporate Debt Securities. Established in 2000, CAL is a full-service Investment Bank in Sri Lanka that caters to a diverse network of family businesses and institutional clientele. Its expertise in capital markets has translated into the services offered to its clients, including Equity and Debt Advisory, Stockbroking, Fund Management, Private Equity and Securities Research services.