Laugfs IPO on November 4
Plans 100 room hotel in Chilaw:
Laugfs Gas Ltd announced its intention to raise Rs 2,505 million from
the public through an Initial Public Offering (IPO) of 22 percent of its
Listing on the Dirisavi Board of the CSE, the company is offering 75
million voting shares of the company at the share offer price of Rs 23
each and 52 million non-voting shares of the company at the share offer
price of Rs 15 each.
The official opening of the IPO will be on November 4 and will be
kept open until November 25 unless fully subscribed before that. The
minimum subscription has been set at 100 shares and thereon in multiples
of 100 shares of any class of shares applied.
This IPO will finance the expansion of its core business in LPG
downstream activities mainly for increasing the storage and filling
capacity, expansion of its distribution network and also for the
introduction of a new range of LP Gas related products to the market.
The business activities of Laugfs Group carried out under some of the
subsidiaries - namely the islandwide network to test the vehicular
emission levels, hotel management and serviced apartment complex will
now come under the wings of LGL and part of the proceeds of the IPO will
be applied for further expansion of these activities.
Under the leisure sector, plans are already underway to construct and
manage a new 100 roomed hotel in Chilaw and also to build 72 serviced
apartments at a company-owned prime property in Maya Avenue, Colombo 06,
on which construction has already commenced.
The balance funds collected from the proceeds of the IPO will be
applied to retire the high cost borrowings of the company.
Laugfs Group Chairman W K H Wegapitiya said we also hope to use this
money for our future strategic investment plans, such as the leisure
industry, where we have already been managing two hotels down south,
Emerald Bay and Temple Tree and we are also currently building a
four-star plus resort in Chilaw with 100 rooms at an investment of Rs
500 million, he added.