The shares of debutant People’s Insurance Limited PLC (PIL) yesterday closed at Rs.14.90, below the offer price of Rs.15, despite opening higher at 15.60.
PIL, the first company to list its shares on the Colombo Stock Exchange (CSE) this year, is a subsidiary of People’s Leasing & Finance PLC, which is in turn controlled by state-owned People’s Bank.
PIL, through its IPO offered 50 million ordinary shares at Rs.15 each to raise Rs.750 million. The IPO was oversubscribed 6.9 times within hours of opening.
During the customary visit by the company to the CSE trading floor on the opening day of trading, PIL Chairman Jehan Amaratunga said PIL will allow its shareholders to enjoy the benefits of good management, the value, and wealth created for them.
“I commit to all shareholders that we will uphold all their aspirations to bring this company to greater heights. We will also try to get into the S&P index in the near future,” he added.
PIL’s immediate parent, People’s Leasing & Finance PLC is in the S&P Sri Lanka 20 index.
While in the last few years the PIL was largely engaged with in-house businesses from People’s Leasing and the People’s Bank Group, the company is now actively looking at board basing and opening business in the general market.
On the cards are a series of new products that will hit the market in the near future.
Amaratunga said IT platforms would be extensively used to market their products to stand out from the rest. He pointed out that despite the low penetration rates, there is immense potential in both, life and general insurance, provided the product is structured correctly. (SAA)