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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 stake yesterday.

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.

 

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