ASIA ASSET FINANCE PLC (AAF.N0000)

Asia Asset Finance Limited (AAFL), seen in the public domain as the unconventional finance company, today announced its intention to divest a 27.8% stake of the Company to the public through an Initial Public Offering, thus raising Rs 425 million, in compliance with Central Bank regulations that all Registered Finance Companies be listed with the Colombo Stock Exchange (CSE).

visit http://www.lankabusinessnews.com/11.11.November/100.AAFL.html for more details

Yes, you can't say it's a failure just because it did not get the full subscription and did not oversubscribe by so many times like it used to be..

It will be very interesting to see the shareholders list after the IPO. will it remain as a fully owned subsidiary of Asia Capital? Only time will tell us.

Quibit wrote:It will be very interesting to see the shareholders list after the IPO. will it remain as a fully owned subsidiary of Asia Capital? Only time will tell us.

I applied for some.. So I guess ACAP wont be owning it 100% :-))

Anyway like Godswen Said, They just did not get oversubscribed on the first day, and technically they have time till 15th December to do this. What matters is not how many times and how soon a company get Oversubscribed, but how well they use the funds. anyway lets hope for the best.

This guy is lying through his teeth. If the objective of Asia Asset listing was to comply with the Central Bank regulations, then they should have gone in for an Introductory listing instead of an IPO.

I am glad that nowadays investors are much smarter.

Slow start for Rs. 450mn Asia Asset Finance IPO
November 30, 2011, 9:09 pm

By Ravi Ladduwahetty

The Rs. 450 million Asia Asset Finance Initial Public Offering, which kicked off on Monday, is yet to be oversubscribed making it one of the few post-conflict IPOs not to be oversubscribed on the opening day.

There were only 505 applications to the value of Rs. 132 million as at 1 pm on Tuesday, through the issue was billed to close on December 15. Asia Asset Finance is a wholly owned subsidiary of Asia Capital PLC. The issue by itself was not underwritten.

"Investors are getting wiser now and they do not invest in IPOs and equities the way they were used to, and they do not blindly put in money into share issues now even if the issue is not fully subscribed, it does not matter," Chairman of both Asia Asset Finance and Asia Capital Mano Nanayakkara told The Island Financial Review yesterday.

Responding to a question as to what would be the future of the depositors if the issue was not oversubscribed, he said that was not an issue.

Meanwhile, Ms. Priyanthi Peiris, Director of PW Corporate Services, Managers to the Issue, confirmed that only Rs. 132 million had been subscribed by Tuesday in 505 applications but added that there were lots of applications from the Asia Capital shareholders pouring in given the incentives given to them in the prospectus. She also said that the recent overtime boycott of the postal unions also may have been the cause of the delay in the shareholders’ applications getting to the Managers.

She also said that the IPO was floated not because the company wanting it at this stage, but due to the mandatory requirement of the Central Bank of Sri Lanka to have all finance companies listed on the Colombo Stock Exchange and that the funds would be used for the working capital of the company.

The objective of the offering is in line with the Central Bank of Sri Lanka, requiring that all Registered Finance Companies be listed with the Colombo Stock Exchange on or before 30th June 2011. Subsequently, on the basis of the Company making the application to the CSE prior to 30th June 2011, the Company has informed the Central Bank that the listing would take place after 30th June 2011.

Although this has been the driving factor for the issue, the main objective of the issue is to raise sufficient funds through the issue and to utilize 90% of these funds to invest in the core operations of the organization (as per table 1 below), which includes Leasing -20%, Hire Purchase – 10%, Corporate Loans -10%, Three Wheel -15%, Group Personal Loans – 10%, Consumer Finance – 10% and Pawning – 15%. This will help us to widen our margins between interest income and interest expense, as a result increasing the performance of the company.

The remaining 10% of the issue will be utilized for branch expansion and product development of the company. The company believes this will add value to the company and help establish a wider reach in the community to better service our clients. Asia Asset Finance believes that 90% of the IPO proceeds will be utilized within FY2011/2012, and the remaining 10%, which is allocated to branch expansion and product development, will be utilized as appropriate. .

Upon successful completion of the issue, Asia Asset Finance will be listed on the Diri Savi Board of CSE.

Malika1990 wrote:

Shares of Asia Asset Finance to debut on CSE tomorrow
Published : 12:02 am January 11, 2012
Shares of Asia Asset Finance will be listed on the Colombo bourse from 12 January.
The company, which offered 120 million shares through its recent Initial Public Offering, complying with a Central Bank directive for all finance companies to list, will see 559,471,889 shares listed on the Diri Savi Board.
The company’s Rs. 425.4 million IPO took 14 days to be fully subscribed, making it the first IPO not to be subscribed on the opening day.
The offering was for 120 million shares priced at Rs.2.50 with the option to issue a further 50.16 million shares. The company has an asset base of Rs. 2 billion and profits grew 200% to Rs. 80 million in financial year 2011.
Funds from the IPO were earmarked to expand the core operations of the company. Shares of its holding company Asia Capital Plc closed at Rs. 62 yesterday.

Kumar wrote:

Malika1990 wrote:

Shares of Asia Asset Finance to debut on CSE tomorrow
Published : 12:02 am January 11, 2012
Shares of Asia Asset Finance will be listed on the Colombo bourse from 12 January.
The company, which offered 120 million shares through its recent Initial Public Offering, complying with a Central Bank directive for all finance companies to list, will see 559,471,889 shares listed on the Diri Savi Board.
The company’s Rs. 425.4 million IPO took 14 days to be fully subscribed, making it the first IPO not to be subscribed on the opening day.
The offering was for 120 million shares priced at Rs.2.50 with the option to issue a further 50.16 million shares. The company has an asset base of Rs. 2 billion and profits grew 200% to Rs. 80 million in financial year 2011.
Funds from the IPO were earmarked to expand the core operations of the company. Shares of its holding company Asia Capital Plc closed at Rs. 62 yesterday.

Thank you for sharing

Came and Good Return for the investors

Gaja wrote:Came and Good Return for the investors

yes, very good return for investors

i have a question in my mind, when it was 2.50 no body willing to buy? now buyers are there for 3.30? what is the rational behind this? i sold the shares i got in the IPO

4.10

Gaja wrote:i have a question in my mind, when it was 2.50 no body willing to buy? now buyers are there for 3.30? what is the rational behind this? i sold the shares i got in the IPO

Could it be that people are worried to buy into IPOs now but when they see a trend to trade get get into the bus?

Gaja wrote:i have a question in my mind, when it was 2.50 no body willing to buy? now buyers are there for 3.30? what is the rational behind this? i sold the shares i got in the IPO

It is called "MOMENTO GREEDINESS" meaning greediness created by momentum.
CSE is very famous for that.....

rijayasooriya wrote:

Gaja wrote:i have a question in my mind, when it was 2.50 no body willing to buy? now buyers are there for 3.30? what is the rational behind this? i sold the shares i got in the IPO

It is called "MOMENTO GREEDINESS" meaning greediness created by momentum.
CSE is very famous for that.....

very correct. in other word momentum created by greediness.

I sold mine @ 3.20 now its going @ 4.20

Observing what is happening for ASI ppl will be crazy and Next IPO would be oversubscribed within the very first day.

now it is trading at 6.30 maxmimum

so today somebody willing to Pay 6.30 as well !!!!!!!!!!!!!!!!!!!!!!!!!1

why AAF doesn't break 6.30

Book value is 1.26,Earning per share is 0.06, When AAF is coming to market,price up and after down,but now very boring........

keeper wrote:Book value is 1.26,Earning per share is 0.06, When AAF is coming to market,price up and after down,but now very boring........

Technically GD to buy now