Key investments and strong growth prospects in the offing:

Renuka Agri Foods to launch IPO

Sanjeevi Jayasuriya

Renuka Agri Foods Limited (RAFL), the only company manufacturing coconut based products endorsed by Mawbima Lanka Foundation will launch its Initial Public Offering (IPO) from November 27 for subscription of Rs. 270 million for 120 million shares valued at Rs 2.25 each, said Renuka Agri Foods Limited Executive Director Shamindra Rajiyah.

Renuka Agri Foods Limited Executive Director, Shamindra Rajiyah. Picture by Saliya Rupasinghe

The IPO will finance new key investments, the repayment of long term borrowings and facilitate the listing of the company’s ordinary shares on the Colombo Stock Exchange, he said.

The company a fast growing value added coconut based industry involved in agri based industry and the investor service sector is a leading coconut related industry accounting for 10 percent of world exports. Its products are exported to 52 countries across the globe and is a home grown Sri Lankan success story, he said.

Focusing on organic growth and selective acquisitions, RAFL intends to invest in plantations, distribution infrastructure and new technologies via the proceeds from the IPO. RAFL foresees strong growth prospects by expanding its business interest, moving into new packaging technologies, intercropping coconut plantations and strengthening the existing distribution model in Sri Lanka and Europe.

The only triple certified company, RAFL has maintained a year on year average growth of 78 percent over the last five years.

RAFL’s principal activity is the manufacture, distribution and global marketing of coconut based food and beverages, namely coconut milk powder, coconut milk in aseptic packages, canned coconut milk, defatted desiccated coconut and coconut beverages.

Featuring the most diversified coconut factory in the country, the company utilizes alternative food processing technologies, supported by a full research and development program for product applications and process design and improvements.