Sri Lanka Mackwoods Energy share issue draws almost Rs400mn

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

Mar 30, 2012 (LBO) - The Initial Public Offering of Sri Lanka's Mackwoods Energy Limited that was oversubscribed on the opening day has drawn applications worth almost 400 million rupees, a stock exchange filing said. The IPO was an offer for subscription for 25 million ordinary voting shares at 14 rupees each, to raise a total of 350 million rupees.

The IPO drew a total of 523 applications for 28.5 million shares worth 399 million rupees, the statement said.

It got only two applications with bank guarantees, for 7.2 million shares worth 100 million rupees in value.

The IPO drew 521 applications with payment by bank drafts and cheques for almost 21.3 million shares worth 298 million rupees.

The funds are expected to be used to finance working capital requirements and the company’s foray into hydropower generation.