Wealth Trust Securities woos investors for Rs. 500.8 m IPO

WEALTH Trust Securities Ltd., (WTS) one of Sri Lanka's leading non-bank Primary Dealers, yesterday formally announced its Rs. 500.8 million-worth Initial Public Offering (IPO) which is up for subscription now whilst the official opening is on 17 December.

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The IPO involves issuance of 5.84% stake or 71.548 million shares at Rs. 7 each.

During the media launch, the company's Board and senior management outlined how the IPO is designed to strengthen WTS's core capital position, enhancing resilience against unexpected interest rate volatility and improving its ability to manage market risks associated with primary dealer operations.

The company reiterated that the capital infusion will be used in the ordinary course of business, primarily to expand its trading portfolio of Government securities as favourable opportunities arise.

Chairman Senaka Weerasooria assured prospective new shareholders the IPO and the company going forward offers an opportunity to participate in the next stage of the company's growth journey and maximise returns. He said “have absolute confidence and trust,” in the company and its professional management.

The media was told yesterday that WTS with conservative trading approach has delivered strong returns, averaging an ROE of 31% over the past 12 years. With forward rates expected to decrease further, WTS is well positioned to sustain profitability through disciplined balance sheet management and continued focus on capitalising on market opportunities and optimising returns.