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The response from retail investors to the Initial Public Offering (IPO) of Sri Lanka Telecom (SLT) was unprecedented, with over 23,000 applications being received.

Following the closure of the IPO, the Government decided to limit the number of shares to 12 per cent of SLT's issued capital. A total of 216,583,200 shares will be allocated, raising Rs 3.25 billion for the State coffers.

The Secretary to the Treasury has decided on a general basis of allocation which gives priority to domestic retail investors, domestic non-state institutional investors and foreign investors. Applications from the State-controlled investment funds and institutions will be accommodated only after satisfying the demand from private and foreign sources.

According to official sources, the basis of allotment for the SLT shares emphasises the Government's desire to make progress in the development of the capital market by creating a broad-based share owning democracy and encouraging foreign portfolio investment. By giving priority to retail investors, the SLT IPO has attracted new players to the market. The shareholder base is expected to increase to 30,000 after the IPO.

This includes the existing shareholders.

The subscription profile after allocation is as follows:

Share allocation
Domestic retail 34%
Domestic non-state institutions 23%
State institutions 27%
Foreign 16%

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