NDB rights issue 60% subscribed, Rs3.8bn raised

October 10, 2018 (LBO) - Colombo Stock Exchange (CSE) listed NDB Bank has raised Rs3.8bn through a rights issue in difficult market conditions. Although the rights issue aimed to raise over Rs6bn, it was only 60% subscribed.  Analysts say that the issue was a relative success, as the subscription was taken up during very difficult market conditions. The CSE has been in a downtrend along with other emerging markets.  The main indices, the ASPI and S&P SL 20 are down close to 10% and 20% respectively for 2018. On the last day for subscription, the stock was trading close to the rights issue price of 105/share.  The rights issue was priced at a significant discount of close to 1/2 the book value of Rs200/share. The board of the bank has approved the placement of the shares unsubscribed for in the rights issue to an outside investor if one is able to be found. Shareholder approval has not yet been obtained for this move.