Hela Apparel Holdings IPO oversubscribed on opening day

The initial public offering (IPO) of shares of Hela Apparel Holdings Limited (Hela Clothing), one of the largest IPOs ever in Sri Lanka, received an overwhelmingly positive response, being oversubscribed within hours of the offer opening on the 12th of January 2022. Having successfully raised LKR 4 billion in equity capital for Hela Clothing, the offer closed at 4.30pm the same day.

The IPO by Hela Apparel Holdings Limited received applications for over the IPO value of Rs. 4 billion, and this IPO is the largest issue since 2011.

Huge interest
was witnessed from across a spectrum of investors, with both local and foreign
individuals, institutions and non-retail investors eagerly subscribing to the
issue.

Expressing his
sentiments, Dilanka Jinadasa – Group CEO of Hela Clothing said, “We are truly
overwhelmed and grateful for the interest shown by the public for our initial
public offering. We have already begun work to execute our IPO plans with a
keen focus on our value creation journey ahead.”

The issue,
jointly managed by CAL and CT CLSA, witnessed a 20% stake in the company or
267,108,998 ordinary voting shares being offered to the public at a per share
price of LKR 15.

Hela Clothing is
guided by an experienced, diverse and competent management team and operates 11
manufacturing facilities across 6 countries of origin, while generating
revenues exclusively in US dollars, making it an excellent way for investors to
insulate against rupee risks.

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