The Initial Public Offering (IPO) of People’s Insurance Limited has been oversubscribed on the opening day itself amidst strong individual and institutional investor interest. As per an announcement made by the Company to the Colombo Stock Exchange (CSE) within minutes of the market opening. NDB Investment Bank, Acuity Partners and People’s Bank – Investment Banking Unit who acted as Joint Financial Advisors and Managers to the Issue stated that healthy demand was witnessed across all investor categories with a strong institutional order book. The Joint Managers indicated that SSP Corporate Services (Private) Limited, Registrars to the Issue, would duly notify the CSE on the applications received under each category subsequent to processing the same and that the shares are expected to be listed on the CSE during the second week of January 2016.
People’s Insurance issued 50 million ordinary shares to the public at LKR 15/- each, raising LKR 750 million with the objective of strengthening its capital base to support its medium to long term growth strategy. The company is the first general insurer to list on the CSE among those companies required to list on the exchange as per the requirements of the Insurance Board of Sri Lanka and relevant industry legislation. It should also be noted that People’s Insurance will be the first pure-play general insurance company to be listed on the CSE.
Mr. Jehan Amaratunga, Chairman of People’s Insurance, thanking investors for placing their trust in the company in its maiden issue of shares, said “The overwhelming response for our IPO marks an important milestone in the journey of People’s Insurance. We have come a long way since commencing operations in 2010 and are well geared to deliver and share the success of the company with our new investors. The company intends to further penetrate its bancassurance channels and non-captive retail business in the future.”
Commenting on the strong investor appetite for the IPO, Mr. D. P. Kumarage, Managing Director of People’s Insurance, said “We are delighted to witness a strong positive response from both retail and institutional investors for our IPO. People’s Insurance is a focused player in the general insurance segment and we hope to grow our business whilst maintaining underwriting profitability.”
The Joint Managers are hopeful that the strong response for the IPO would augur well for healthy secondary market trading activity once the shares are listed on the CSE. The success of the IPO would also help catalyse retail investor sentiment on the CSE which has remained lackluster throughout the year.
Having commenced commercial operation in 2010, People’s Insurance has grown to be the fifth largest general insurer in the country in terms of the premium income, within a very short period of time. A fully owned subsidiary of People's Leasing & Finance PLC (“PLF”), which in turn is held by People’s Bank (“PB”), the Company derives significant business volumes from its captive business channels. PLF and PB are able to enhance the service offering by referring customers to People’s Insurance who in turn obtain general insurance solutions with much convenience whilst enjoying the trust and reliability offered by the Company as part of the PB Group.