IPO Related News
Equitable Share Allotment in Record ODEL IPO
Every valid application among the 22,548 received for shares of ODEL at the company’s record-setting Initial Public Offer is to be allocated shares, with the smallest investors being satisfied in full and larger investors receiving allocations proportionate to their respective applications, the company has announced.
ODEL’s recently concluded IPO of 16.7 million shares was oversubscribed by over 64 times, raising Rs. 16 billion compared with the IPO value of Rs. 250.5 million.
While the IPO allocated 1.2 million shares for employees, it also had a unique feature in that retail and non-retail investor categories were allocated separate tranches, so as to avoid smaller investors being crowded out by larger investors and to encourage wider share ownership.
Notifying the Colombo Stock Exchange of the basis of allotment following the massive oversubscription, ODEL has announced that applicants within the ‘Retail’ category (applications for up to 5000 shares) would be allotted between 100 to 500 shares, based on sub-tranches within the category, thus ensuring that each applicant receives a minimum of approximately 9-10% of the respective amounts applied for. All applicants who had applied for 100 shares, numbering over 1,500 investors, will be satisfied in full.
This retail category attracted almost 18,000 applicants, with the allocated 3 million shares being oversubscribed by over 8 times, the announcement said.
The Non-Retail portion, consisting of applicants in excess of 5,000 shares, was over-subscribed by over 80 times, with the allocated 12.5 million shares attracting bids for over 1 billion shares from more than 4,500 investors. The ODEL Board of Directors has decided that the most fair allotment basis in this instance is to allot a minimum of 500 shares to all investors plus a pro-rata percentage of approximately 0.9844% of the remainder for each applicant.
The Employee portion of 1.2 million shares was also comfortably over-subscribed. As a result, all applications up to 10,000 shares in this category would be allotted in full, while others would be allotted 10,000 shares plus a pro-rata percentage of 58.5% of the balance applied for by each employee.
“Given the overwhelming response to the issue, and the unprecedented level of over-subscription, working out a formula for allotment was a major challenge for the Board of Directors” ODEL Chairman Ruchi Gunewardene said. “We believe this is an equitable allotment that responds to the aspirations of all categories of investors.”
ODEL founder and CEO Otara Gunewardene said: “I would like to thank all our investors for the trust and confidence they have placed in us. We have always believed in offering the best shopping experience to our customers and this emphatic endorsement will definitely inspire us to challenge ourselves to do even better.”
ODEL’s shares are expected to commence trading on the Colombo Stock Exchange in the first week of August.
Founded 20 years ago, the ODEL chain of definitive fashion and lifestyle stores now comprises of 12 outlets at Alexandra Place, Kohuwala, Mount Lavinia, Moratuwa, Panadura, Maharagama, Nugegoda (Warehouse), Dickman’s Road, Ja-ela, Majestic City, Crescat (Backstage) and at the Bandaranaike International Airport. ODEL’s 13th store opens at Battaramulla today, 16th July.
DAILY MIRROR - 09-07-2010
Daily FT - 09.07.2010
Odel IPO Heavily Oversubscribed
DAILY NEWS – 06-07-2010
The initial public offer (IPO) of ODEL opened for subscription yesterday, was closed the same day as it was heavily oversubscribed. The IPO’s Registrar has
notified the Colombo Stock Exchange (CSE) that further announcements will be made in a few days on the total value of the applications received, and the basis for allocation in the context of the oversubscription.
The first fashion retailer to go public in Sri Lanka, ODEL offered 16.7 million shares, an 11.5 per cent stake in the company’s equity, at Rs 15 per share. Of these shares, 1.2 million were set aside for applications from employees, 3 million for applications of up to 5,000 shares, and 12.5 million shares for applications for more than 5,000 shares.
“The public interest in our IPO has been overwhelming, and a great source of inspiration,” ODEL’s founder and CEO Otara Gunewardene said.
“Everything we have done since inception has been intended to delight our customers, and we are most gratified to see the public embracing our IPO.
The enthusiasm has exceeded even our high expectations.” Founded 20 years ago, the ODEL chain of distinctive fashion and lifestyle stores now comprises of 12 outlets at Alexandra Place, Kohuwala, Mount Lavinia, Moratuwa, Panadura, Maharagama, Nugegoda (Warehouse), Dickman’s Road, Ja-ela, Majestic City, Crescat (Backstage) and at the Bandaranaike International Airport.
The next store is due to open at Battaramulla later this month, and ODEL has said the funds raised from the IPO are to be primarily used for further expansion and improvements to existing stores.
The IPO was managed by CT Capital and John Keells Capital.
ODEL is a standard stop on most itineraries of tourists visiting Sri Lanka.
OTARA; Her Success Story
DAILY MIRROR - 06-07-2010
From selling surplus garment items from the boot of her car, to opening up a world renowned clothes store in Sri Lanka, she is all about being innovative and creative. Her runway poses, her novel concepts and her notable charity work only add to her achievements.
She is none other than Otara Gunawardene; a Biological degree holder turned model, who, as CEO of ODEL, is one of the country’s leading female entrepreneurs.
Daily Mirror online caught up with this dynamic personality to ask her about her success story.
“My interest in modeling began when a friend of mine, who’s a designer, asked me to model for her show. I decided to continue with it after I completed my degree as there was nothing much I could do with a degree in Biology. At the same time my father had also registered a company under my name to encourage me to venture into business and earn a living,” Otara said recalling her first steps.
A small initiative which began 20 years ago from the boot of her car has now expanded to twelve stores located in and around Colombo.
Speaking on the products available at ODEL, Otara said she buys products locally and also imports products from around the world.
“We have different suppliers; we have international brands, in-house brands and our own concepts. Although there are a limited variety of local products offered to us, we showcase them in our stores if we think they need exposure and are marketable,” she added.
Commenting on the concept of selling ODEL branded bottled water, she said initially it was limited to ODEL stores but is now sold at different supermarkets. She added that the initiative is all about the look, the brand, and taking it closer to the people.
When Daily Mirror online inquired about ‘Embark’, she said it was a project close to her heart as she has always been fond of animals. Since its inception, ODEL always contributed profits from a certain clothing range for a cause involving animals, the environment or people.
“I started Embark three years ago to improve the well-being of all animals, but at the moment we focus mainly on dogs. Stray dogs are an issue in the country and we are trying to reduce the number of stray dogs on the streets, because I don’t think that’s where they belong,” she opined.
Apart from being a leading businesswoman, Otara is also a mother of two boys, aged 16 and 10. When asked how she juggles being a single parent and the CEO of a leading company, she says that she has finally found more balance in handling the two. Explaining further, Otara said there have been periods where she has been more involved in the store, but added that over the last few years she has tried to spend more time with her family.
“I have to make certain sacrifices as I don’t have time for everything. But over the last few years I have tried to spend more time with my family and ensure that I can split my time between my work and my family. I think I have found more balance between the two but there is always room to improve, and I try to work on it every day,” she said.
Speaking about her decision to enlist ODEL at the Colombo Stock Exchange, Otara said she felt it was the next step for the company. She went on to say that everybody wants a piece of ODEL, and so she decided to enlist it at the CSE.
Apart from the many roles Otara plays, she has also ventured into designing jewellery, and came up with the ‘Otara collection’ marketed by the Colombo Jewellery Stores.
“I don’t think I’ll ever stop dreaming and developing new concepts. I’m planning to look at areas for new stores, improve the current stores and also look into expanding overseas in the near future,” Otara said, elaborating her plans for ODEL.
Starting from humble beginnings Otara Gunawardene has created an empire, yet she continues to dream of new things and her desire to create new things is sure to place her at the forefront of the fashion industry.
Watch »
Odel IPO Opens Tomorrow for Public
The Bottom Line - Sunday, July 4, 2010
Seeking to raise Rs. 250.5mn for expansion, Sri Lanka’s definitive lifestyle retail brand is offering employees and members of the public an 11.52 per cent stake in its equity, with an offer of 16.7 million shares at Rs.15 each. The Odel Initial Public Offering will be opened to the public from tomorrow.
Coming almost 20 years to the day that ODEL’s first store opened at Dickman’s Road, Colombo 5, the Initial Public Offering (IPO) will broad base ownership of a privately held business that has grown exponentially over the years, increasing its retail space from 400 square feet to 128,000 square feet; amassing assets of Rs.2,348 million and achieving a near fivefold growth in netprofit over the past five years.
A brand that has retained its aspirational aura even after growing to 12 stores and 700 plus employees and achieving ‘household-name’ status, ODEL is seeking to expand further in the anticipated post-conflict resurgence of Sri Lanka to make its unique offering accessible to a larger segment of the population with new strategically-located stores and improvements to its existing stores and facilities.
Presenting its IPO Prospectus to the media recently, the company announced that its expansion programme includes new branches and business infrastructure development with new branch locations to be finalised after market surveys and feasibility studies and identifying favourable sites. “Given its well established and recognised brand equity, the company believes that its store expansion plan will contribute swiftly to boosting revenues and profitability,” the prospectus stated.
The 16.7 million offered shares are to be distributed among three broad investor categories --Employees (1.2 million shares), Retail investors (3 million shares) and ‘Non-Retail’ investors (12.5 million shares). Applications can be made for a minimum of 100 shares (Rs.1,500) or in multiples of 100, and for the purpose of allotment, public applications for up to 5,000 shares will be categorised as ‘Retail,’ and applications for larger blocks as ‘Non-Retail’ so as to minimise the chance of smaller investors being crowded out.
Subsequent to the IPO, the entirety of ODEL’s 144,950,000 issued and paid up shares will be listed on the Diri Savi Board of the Colombo Stock Exchange.
Addressing journalists, Ms Gunewardene, who started ODEL’s phenomenal journey by selling export-surplus apparel from the boot of her station wagon more than two decades ago, described the IPO as a milestone of corporate and personal significance. “There hasn’t been a single dull moment for me or for ODEL since its inception,” she said. “ODEL may have happened quite by accident. But what followed in the subsequent decades was far from accidental.”
“We made a determined effort at unlocking ways to indulge each customer, and creativity across the world provided a muse for our eclectic brand. But mostly, it was our own imagination that inspired us, the imagination of a team, who like me, wakes up each morning challenging our boundaries. I believe that is what makes us distinctly different from the rest. It is this incredible energy, and our understanding of what our customers want, is what will help us drive ODEL into the world of possibilities that the IPO is opening up for us,” Ms Gunewardene said.
Now comprising 12 stores and with its latest store in Battaramulla poised to open in July, ODEL is well positioned to ride the wave of optimism and growth as Sri Lanka’s economy grows in the post-conflict area. It is set to benefit from higher levels of domestic consumption activity amid fast improving macroeconomic conditions that are expected to contribute to rising disposable income levels in the country.
Daily FT - 06.07.2010
ODEL IPO Investor forum and Press Conference
The Initial Public Offering of ODEL was officially announced yesterday at a press conference held at Cinnamon Grand Hotel. This was followed by an investor forum for Stock Brokers, Unit trusts and Fund managers.
Sri Lanka Odel annual profits Rs142mn - LBO
June 22, 2010 (LBO) – Sri Lankan retailer Odel said it made 141.8 million rupees in net profits last year, as sales recovered and margins improved, with money from a share issue to be used to retire debt and expand.
The retail chain's profits for the financial year ending March 2010, revealed for the first time, were up 313 percent from the year before when sales were flat because of the economic slowdown.
Odel's sales last year rose 23.8 percent to 2.41 billion rupees, while margins increased to 5.8 percent from 1.7 percent the year before, its prospectus said.
About 150 million rupees of the initial public offer opening on July 5 will be used to expand the number of Odel outlets, and 100 million rupees to retire short-term debt, Channa Amaratunga of CT Capital, the lead managers, told media at the launch of its IPO.
Odel, a well-known Sri Lankan brand with 11 stores, serves upper and middle-class customers, about 40 percent of whom are foreign tourists and residents.
Odel plans to issue 16.7 million shares at 15 rupees a share which would push up its total share capital by 11.52 percent to 144.95 million shares.
Amaratunga said 1.2 million shares are allocated to employees, 3.0 million shares to retail buyers and 12.5 million shares to high-net-worth and institutional investors.
After the IPO, Odel founder and chief executive Otara Gunewardene's shareholding would fall to 55.77 percent from 63.03 percent, its prospectus said.
Ajith Gunawardene, the elder brother of Otara Gunawardene, and deputy chairman of the John Keells Holdings conglomerate, is also a shareholder of Odel whose stake will fall to 27.88 percent from the present 31.51 percent.
Odel's profitability had see-sawed in the past five years, its prospectus showed.
In the financial year ending March 2006, Odel made a net profit of 29.5 million rupees, which rose in 2007 to 74.9 million, but fell in 2008 to 67 million and was down again to 34.3 million rupees in 2009.
However, its revenue growth had been more stable. In 2006 Odel had revenue of 1.57 billion rupees, in 2007 1.68 billion rupees, in 2008 1.94 billion, and in 2009 1.95 billion rupees.
About 75 percent of its revenues come from the sale of clothes, while the rest is made up of rent, high-end ornaments and other collectables.
Odel Invites The Public To Share In Its Success - www.adaderana.lk
June 22, 2010 12:58 pm
* IPO of 16.7 million shares opens 5th July
* 11.5% of equity to be offered
A rare opportunity presents itself for the public to share in the runaway success of a premium lifestyle brand when ODEL LIMITED formally opens its initial public offer on Monday 5th July, becoming Sri Lanka’s first fashion retailer to go public.
Seeking to raise Rs. 250.5 million for expansion, Sri Lanka’s definitive lifestyle retail brand is offering employees and members of the public an 11.52 per cent stake in its equity, with an offer of 16.7 million shares at Rs 15 each.
Coming almost 20 years to the day that ODEL’s first store opened at Dickman’s Road, Colombo 5, the IPO will broad base ownership of a privately held business that has grown exponentially over the years, increasing its retail space from 400 square feet to 128,000 square feet; amassing assets of Rs. 2,348 million and achieving a near five-fold growth in net profit over the past five years.
A brand that has retained its aspirational aura even after growing to 12 stores and 700 plus employees and achieving ‘household-name’ status, ODEL is seeking to expand further in the anticipated post-conflict resurgence of Sri Lanka to make its unique offering accessible to a larger segment of the population with new strategically-located stores and improvements to its existing stores and facilities.
Presenting its IPO Prospectus to the media on Tuesday, 22nd June, the company said its expansion programme includes new branches and business infrastructure development, with new branch locations to be finalised after market surveys and feasibility studies and identifying favourable sites.
“Given its well-established and recognised brand equity, the Company believes that its store expansion plan will contribute swiftly to boosting Company revenues and profitability,” the Prospectus said.
The 15.7 million offered shares are to be distributed among three broad investor categories – Employees (1.2 million shares), Retail investors (3.0 million shares) and ‘Non-Retail’ investors (12.5 million shares).
Applications can be made for a minimum of 100 shares (Rs. 1,500) or in multiples of 100, and for the purpose of allotment, public applications for up to 5,000 shares will be categorized as ‘Retail,’ and applications for larger blocks as ‘Non-Retail’ so as to minimize the chance of smaller investors being crowded out.
Subsequent to the lPO, the entirety of ODEL’s 144,950,000 issued and paid up shares will be listed on the Diri Savi Board of the Colombo Stock Exchange.
Addressing journalists, Ms. Gunewardene, who started ODEL’s phenomenal journey by selling export-surplus apparel from the boot of her station wagon more than two decades ago, described the IPO as a milestone of corporate and personal significance. “There hasn’t been a single dull moment for me or for ODEL since inception,” she said. “ODEL may have happened quite by accident. But what followed in the subsequent decades was far from accidental.”
“We made a determined effort at unlocking ways to indulge each customer, and creativity across the world provided a muse for our eclectic brand. But mostly, it was our own imagination that inspired us, the imagination of a team, who like me, wakes up each morning challenging our boundaries. I believe that is what makes us distinctly different from the rest. It is this incredible energy, and our understanding of what our customers want, is what will help us drive ODEL into the world of possibilities that the IPO is opening up for us,” Ms. Gunewardene said.
Now comprising 12 stores and with its latest store in Battaramulla poised to open in July, ODEL is well positioned to ride the wave of optimism and growth as Sri Lanka’s economy grows in the post-conflict area. The company is set to benefit from higher levels of domestic consumption activity amid fast- improving macroeconomic conditions that are expected to contribute to rising disposable income levels in the country.
ODEL is also synonymous with tourists for shopping in Sri Lanka, and the company’s centrally-located flagship store is one of the most sought-after tourist shopping destinations in the island. With the conclusion of the 26-year separatist insurgency last year, tourist arrivals to Sri Lanka are expected to surge to record highs, and ODEL is set to capitalize on this opportunity as an internationally recognized fashion brand among tourists to Sri Lanka.
In addition to building the brand equity of ODEL over the years, Ms. Gunewardene has also created several other related brands, including ‘Backstage’ for an extensive range of fashion accessories and ‘Embark’ for a cause-linked product range that supports a personal community programme focused on the welfare of community animals.
The Board of Directors of ODEL LIMITED comprises Ruchi Gunewardene (Chairman), Otara Gunewardene (CEO), Paul Topping, Sanjay Kulatunga and Eardley Perera.
Daily FT - 09.06.2010
Odel to list 250.5 million rupees worth shares at the Colombo Stock Exchange - www.colombopage.com
Tue, Jun 8, 2010, 09:22 am SL Time, ColomboPage News Desk, Sri Lanka.
Sri Lanka's trendiest department store, Odel is to raise 250.5 million rupees from its Initial Public Offering (IPO) next month.
The Colombo Stock Exchange (CSE) Monday approved the Odel's application for listing of 16.7 million ordinary voting shares at 15.00 rupees per share. The IPO will be opened on 5th July 2010.
Odel is planning to expand its operations beyond the city of Colombo into selected locations. It has already opened branches in Panadura, Wattala and Moratuwa.
Odel to Raise 250.5 Million Rupees: Sri Lanka IPO Alert - Bloomberg 8.Jun.10
By Anusha Ondaatjie June 8 (Bloomberg) -
The following are details of a planned initial share sale by Sri Lankan retailer Odel Ltd.
*ODEL LTD.: The Colombo-based company plans to raise 250.5 million rupees ($2.2 million) selling shares for the first time, according to a circular from the Colombo Stock Exchange.
Shares offered: 16.7 million shares at 15 rupees apiece. Target: 250.5 million rupees. Offer opens: July 5. Arrangers: CT Capital (Pvt) Ltd. Listing: Colombo Stock Exchange second board.
To contact the reporter on this story: Anusha Ondaatjie in Colombo, Sri Lanka
Sri Lanka's ODEL offers shares to the public - www.sundaytimes.lk 7.Jun.10
ODEL, Sri Lanka’s fashionable departmental store chain, has finally announced that it’s going public, hoping to raise Rs 250.5 million from a share issue.
The store made the announcement through the Colombo Stock Exchange on Monday. The issue is made up of 16.7 million shares at Rs 15 per share.
The company has for a long time been contemplating going public. It didnt say what percentage of the company 6.7 million shares represents.
News Report: Daily News - 08.06.2010
News Report: Daily FT - 08.06.2010
