Laugfs Gas IPO surpasses expectations

Laugfs Gas IPO ordinary voting shares allocated to public over subscribed by 20.2 times where as ordinary non voting shares allocated to public was over subscribed by 21.8 times.

Following is the press release:

PRESS RELEASE

 

Laugfs Gas Ltd, the second largest player in the downstream LP Gas industry in the country wanted to raise Rs. 2.5 billion from a sale of 22% of the shares held by its parent company, through an Initial Public Offer, was proved to be a great success and also was record breaking number of applications received for shares on offer. The subscription lists were closed on 4^th November 2010 the first day itself, it was opened according to the regulations laid down by the Colombo Stock Exchange in the event of an over subscription.  There were 75 million ordinary voting shares and 52 million ordinary non-voting shares respectively on offer. The company was intending to distribute and allocate all shares on the basis of 80% to Public and 10% each for Employees and to Dealers & Customers.

 

The theme of the offer to share the “Golden Harvest”, created much hype, excitement and enthusiasm by the general public, country wide as evident from the huge and unprecedented number of applications for subscription, surpassing 64,000, a record in the history of an Initial Public Offering at the Colombo Stock Exchange.

 

The ordinary voting shares allocated to public was over subscribed by 20.2 times where as ordinary non voting shares allocated to public was over subscribed by 21.8 times. The customer category too was over subscribed to an extent of 5.4 times in ordinary non voting class of shares whilst it was 2.8 times over subscribed in the ordinary voting class of shares.

 

The unique feature of the IPO just concluded was the tremendous interest shown by a significant segment of the ordinary public who never participated in an IPO or had any dealings in the stock exchange activities previously. The applicants were drawn countrywide even from the remote districts including the North and the East. The company intends to retain these applicants as share holders who will remain in the company in the long run and expected to be benefited by better returns and also with active engagement in the company’s affairs in future.