HNB FINANCE Limited IPO oversubscribed

HNB FINANCE Limited, a licensed finance company announced that its Initial Public Offering via Offer for Sale on the Colombo Stock Exchange (IPO) was oversubscribed.

10 million Ordinary Voting Shares at Rs. 5.70 each were offered through the IPO and the Company is also listing Ordinary Non-Voting Shares at Rs. 4.20 per share by way of an Introduction in the Colombo Stock Exchange.

“As anticipated, the offer was oversubscribed, signaling the trust that investors place on us. This positive response also indicates the Country’s current investor friendly environment. We expect to ensure attractive returns to our investors, perhaps even exceeding their expectations,” commented Chaminda Prabhath – Managing Director/CEO – HNB FINANCE Limited.

Commenting on the success of the offer, Mr. Ray Abeywardena, the Managing Director of Acuity Partners (Pvt) Limited who acted as Managers and Financial Advisors to the offer stated that “we are extremely pleased with a near 32% oversubscription on the opening day of this highly anticipated IPO which incidentally is the first IPO in two years. The high retail participation in the IPO is an indication of the overall investor confidence towards the future prospects of HNB Finance Limited”.

HNB FINANCE Limited is a subsidiary of Hatton National Bank PLC, which owns 51% of the Ordinary Voting Shares while Prime Lands (Pvt) Limited will own 38.86% of the Ordinary Voting Shares subsequent to the completion of the IPO.

Previously, in 2011, Prime Lands (Pvt) Limited acquired the major shareholding of the underperforming finance company through a restructuring plan put forth by Prime Lands (Pvt) Limited which was approved by the Central Bank of Sri Lanka. The Company was then rebranded as Prime Grameen Microfinance Limited. Prime Land (Pvt) Limited’s strong business acumen coupled with prudent management tactics deployed by a group of senior managers turned around the Company’s performance. Within two short years, Prime Grameen Microfinance Limited reached a commendable position as a profit making financial company.

In 2015, Hatton National Bank PLC, acquired 51% controlling stake in Prime Grameen Microfinance Limited and subsequently changed the Company name to HNB Grameen Limited.

In 2017, DWM Funds (Developing World Market) S. C. A. SICAV SIF, a private equity fund, registered in Luxembourg and managed from Singapore acquired 7.93% of the Company. The fund added noteworthy value to the Company, driven by its particular expertise in the micro finance industry.

In 2018, HNB Grameen Limited was rebranded as HNB FINANCE Limited, in a strategic move to benefit from the strong position of the parent Company, Hatton National Bank PLC.

Gearing up to achieve greater heights, HNB FINANCE Limited is a trusted, leading player in the nation’s micro loans landscape. Proving its mettle as a player to be reckoned with HNB FINANCE Limited won many local and international accolades in recent times. In 2019, HNB FINANCE Limited was ranked among Asia’s best workplaces. World renowned W³ Awards which celebrates digital excellence by honoring outstanding Websites, Web Marketing, awarded HNB FINANCE Limited with a silver award recently. The Company also clinched the silver award at the National Business Excellence Awards in the non-banking category.

In December 2019, aiming to comply with the Tier II capital requirement and to expand its loan portfolio, HNB FINANCE Limited issued debentures amounting to Rs. 1.16 billion, after obtaining a listing of the debentures on the Colombo Stock Exchange.

Today, HNB FINANCE Limited has gained significant market share and has established itself as a trusted and respected finance company. Hatton National Bank PLC’s financial and business strength and stability, poises HNB FINANCE Limited at an advantageous position to pursue greater heights. The Company has diversified into numerous other segments and continues to seek sustainable growth through innovation and exceptional customer service.

Established in 2000, HNB FINANCE Limited is a subsidiary of Hatton National Bank PLC and is a licensed finance company by the Monetary Board of the Central Bank of Sri Lanka. Maintaining an extensive island-wide presence across 48 branches and 21 service centres, HNB FINANCE Limited has over the recent past expanded into new fields of business and now offers Small and Medium Enterprise (SME) loans in addition to savings, gold loans, education loans, home loans, personal loans, fixed deposit facilities and leasing products.