Raigam Wayamba Salterns goes public

The Kingdom of Raigam announced launch of the Initial Public Offering (IPO) of 80 mn ordinary voting shares - worth Rs. 200 mn at Rs 2.50 per share in its subsidiary company Raigam Wayamba Salterns Ltd.

The company intends to raise funds through this offering to finance the capital expenditure requirements for the development of salterns and upgrading salt refineries at a cost of Rs. 200 mn.

At present, 70 percent of the raw salt required for the refinery is purchased from outsiders. With the implementation of the purposed development activities, the company will be able to be self-sufficient in their raw material requirements, which will help the company to further increase its profitability. Also there is a possibility of diversifying activities into chemical industry with excess capacity. Presently the local salt supply from all the available sources in Sri Lanka is not sufficient for the local demand. Furthermore there are no buffer stocks remaining at local salterns. The deficit is imported from other countries like India making a burden of approximately US$. 4.0 b. per annum to the country’s foreign resources. The company wishes to address this national issue positively.

The company has been approved by BOI Sri Lanka for tax exemptions under the 300 Factories Program. Therefore the investors can expect tax free results from the company during the tax holiday period.

The Merchant Bank of Sri Lanka handles the IPO as Managers and Registrars to the issue.

Applications for shares from the potential investors will be accepted at nominated collection points from today onwards. The IPO is to be opened at 9.00 am on March 23. The management of the company expects an encouraging response from potential investors as this is going to be a very early IPO subsequent to the liberation of the country from terrorism.