Sierra cables IPO opens on October 26

by Hiran H. Senewiratne

The much-awaited Initial Public Offer (IPO) of Sierra Cables Ltd (SCL) will open on October 26 serving as a vote of confidence for the economy on the eve of the election fever in the country for a major expansion programme.

SCL is offering 200 million ordinary shares of par value Rs. 1 each at Rs. 3 inclusive of a premium of Rs. 2 to raise Rs. 600 million from the IPO, which will be channelled for planned expansion, its Director Priyantha Perera told the media conference to announce the IPO.

The company has allocated more than 20 per cent for foreign interested parties to purchase shares from the IPO.

Sierra Cables, the owning company of Alucop Cables, one of the leading cable manufactures in Sri Lanka enjoys a market share of 10 per cent with increase of the local construction and telecommunication sectors in the country.

The company has guaranteed demand from within the Sierra Group while it continue to play a crucial role in the supply of cables to the domestic construction industry and leading institutions. The company also exports to the South Asian region.

The company also owns 36 per cent of leading PVC pipes and fittings manufacturer, Central Industries Ltd. With both companies directly linked to the construction industry, Sierra Cables is poised for further growth fuelled by the domestic and regional construction boom, Perera said.

The IPO is expected to set the stage for broad-basing the diversified group with a strong presence in engineering and construction, cable manufacturing, consumer electronics, tourism, fertiliser, IT and property development, he said.