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

Ten 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 on the Colombo Stock Exchange."As anticipated, the offer was oversubscribed, signaling the trust that investors place in 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 HNB Finance Managing Director and CEO Chaminda Prabhath.

The Managing Director of Acuity Partners Ltd, the Managers and Financial Advisors to the offer, Ray Abeywardena, stated: "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 in the future prospects of HNB Finance Ltd.

" HNB Finance is a subsidiary of Hatton National Bank Plc, which owns 51% of its Ordinary Voting Shares, while Prime Lands Ltd. will own 38.86% of the Ordinary Voting Shares subsequent to the completion of the IPO.

Previously in 2011, Prime Lands Ltd. acquired the major shareholding of the underperforming finance company through a restructuring plan put forth by Prime Lands Ltd.

, which was approved by the Central Bank of Sri Lanka. The company was then rebranded Prime Grameen Microfinance Ltd.

Prime Land Ltd'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 Ltd.

reached a commendable position as a profit-making financial company.In 2015, Hatton National Bank Plc acquired 51% controlling stake in Prime Grameen Microfinance Ltd.

and subsequently changed the company name to HNB Grameen Ltd.In 2017, Developing World Market (DWM) Funds 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 microfinance industry.In 2018, HNB Grameen Ltd.

was rebranded HNB Finance Ltd. in a strategic move to benefit from the strong position of the parent company Hatton National Bank Plc.

Gearing up to attain greater heights, HNB Finance is a trusted and leading player in the nation's micro loans landscape. Proving its mettle as a player to be reckoned with, HNB Finance has won many local and international accolades in recent times.

In 2019, it was ranked among Asia's best workplaces. The world-renowned W Awards, which celebrates digital excellence by honoring outstanding websites and web marketing, awarded HNB Finance 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 issued debentures amounting to Rs.

1.16 billion, after obtaining a listing of the debentures on the Colombo Stock Exchange.

Today, HNB Finance 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 places HNB Finance Ltd.

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.

Maintaining an island-wide presence through 48 branches and 21 service centres, HNB Finance 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.

© Pakistan Press International, source Asianet-Pakistan