25th May 2011, the Colombo Stock Exchange Published a new amendments on Listing Rules relating to the Basis of Share Allocations.
Basis of share Allocations
- A Minimum 40% of IPO made available for Retail Individuals Investor category
- A Minimum 10% of IPO made available for Growth & Balanced Unit trusts Investor category.
In the event of Under-subscription
- In the event of under subscription in Unit trusts Investor category, the Retail Individuals Investor category shall be given first priority in allotment of the under subscribed shares.
- In the event of under subscription in Retail Individuals Investor category, the Unit trusts Investor category shall be given first priority in allotment of the under subscribed shares.
Define of Investor Category
An individual investor who subscribes for a maximum of 3,000 shares or value of not more than Rs.100, 000 in a particular share class, whichever is higher.
Growth & Balanced Unit trusts Investor
The Unit trusts operate by Managing companies licensed by the SEC to operate. The company is not less than 500 unit holder resident in Srilanka who together hold at least 50% of that fund.