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| Tuesday, 9 September 2003 |
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Hemas Holdings goes for Rs. 600 million IPO By Channa Kasturisinge Hemas Holdings aspiring to be one of the top five corporates in Sri Lanka yesterday launched its Rs.600 million Initial Public Offering (IPO) of 12 million shares comprising eight million new shares and four million existing shares. The Company which has a paid up share capital of Rs.700 million is expected to increase it up to Rs.780 million on conclusion of the IPO. The share issue is lead managed by the DFCC Bank which has underwritten new shares amounting to Rs.400 million and co-managed by the Hatton National National Bank Ltd. The official launch of the IPO is September 18 while applications will be accepted from the public from yesterday. The Chief Executive Officer, Hemas Holdings (Pvt), Ltd Husein Esufally said that the key objective of the issue is to raise funds to be infused in the form of equity into its 100MW power generation project which is to be commissioned in November 2004. He said Hemas Holdings is also aiming greater public ownership and participation in the Company by facilitating the admission of the Company's shares to the official list of the Colombo Stock Exchange. "The first tranche of 8,000,000 ordinary shares at Rs.50 per share would be to raise Rs. 400 million. The entirety of this sum would part finance the Company's equity contribution in the power generation project. This project has been set up as a joint venture between Lakdhanavi Ltd, Power Plant Services (Pvt.) Ltd. and the Company. The total outlay on this project has been estimated at Rs.6,200 million, for which funding would be provided by a combination of equity and project finance. The second tranche of 4,000,000 ordinary shares at Rs.50 per share would be a sale of existing shares by the shareholders of the company," he said. Established in 1948 by Sheikh Hasanally Esufally (MBE), Hemas is today one of the leading conglomerates in Sri Lanka. Hemas Holdings Ltd is the holding company of the Group which comprises 20 active subsidiaries and three associate companies. The Group is engaged in a diverse set of business activities, focused on healthcare, personal care, leisure, transportation and strategic investmentments. The company's consolidated revenues and profit after tax for the year ended March 31, 2003 amounted to Rs.5,290 million and Rs.401 million respectively, while shareholders funds as at that date stood at Rs.1,686 million. For the three-year period ended March 31, the Company's revenue grew at an average of 15 percent, profits grew at 30 percent and the return on equity was 19 percent. |
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