PCH IPO on August 5
Capital market booming now:
Sanjeevi JAYASURIYA
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NDB Investment Bank CEO Darshan Perera, PCH Director Mangala
Boyagoda, Chairman PCH S.H.M Rishan, PCH Director Sarath
Wickramanayaka and NDB Investment Banking Cluster CEO Vajira
Kulatilaka at the press conference which was held yesterday.
Picture by Rukmal Gamage
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The Information Technology has been identified as a key economic
driver of the country and it will play a major role in the country’s
development drive.
The country’s capital market shows improved performance as it
accounts for 30 percent of the GDP. It is important that more companies
being listed in the stock market to receive wider benefits with the
listing, PC House (PCH) Director Mangala Boyagoda said. “With the
initial public offering companies can go to the next level. This is the
time that we need to bring in more entrepreneurs to the capital market.
It will set an example for other private companies to follow suit,” he
said.
PCH will be the first IT company in Sri Lanka to go for an IPO that
will raise Rs 630 million. It will issue 57.2 million shares at Rs 11
each and the offer will be open on August 5.
The funds collected will be utilized to expand internet data centre
operations and outsourcing, finance the enhancement of BPO and KPO
operations, retire some of the expensive debt capital to increase
leverage capacity, expand current branch network of 28 with five
additional branches, improve service quality and to streamline working
capital operations.
The IPO is a ground-breaking event. PCH which started in 1997 has
reached great heights and it is a Rs 3 billion plus company today. The
businesses need to take place better, faster and efficiently to compete
in the rapid changing environment. Information technology create an
enabling environment to facilitate the needs of doing business, PCH
Chairman S.H.M. Rishan said.
The IPO is an opportunity for the public to invest in IT related
shares. As the PCH performs above industry average targets, the public
could benefit from the share issue.
The company’s share value is continuously rising and also it plans to
offer attractive dividends in the range of 25 to 30 percent, he said.
The Government has identified the importance of ICT in its economic
development process and has placed special emphasis in popularizing it
in all parts of the country. The ICT industry generates $ 311 million
revenue and it is expected to double the amount by 2014 and to record a
further 16 percent growth in four years.
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