Investors have snapped up the biggest Initial Public Offering in four years by LVL Energy Fund Ltd. (LEF), with the Rs. 1.2 billion issue oversubscribed and closed on its official opening day yesterday.
The issue offered 120 million shares at Rs. 10 each. A spokesman for financial advisor and manager to the IPO, Acuity Partners, said by 4.30 p.m. yesterday the LEF IPO had drawn 744 applications requesting for shares worth Rs. 1.46 billion, prompting its closure. The last biggest IPO was worth Rs. 1.6 billion by Amana Bank in December 2013 and that too was handled by Acuity Partners.
LEF is a subsidiary of Lanka Ventures Plc and was incorporated in 2006 for the purpose of consolidating LVEN’s energy sector investments. LEF has invested jointly with reputed project developers to develop and operate power generation projects (installed capacity of operational projects amounts to 136.6MW). LEF will be using IPO funds to retire some debt, retire some preference shares and to be invested in three new hydropower projects.