HVA Foods Limited in Rs 319 million IPO

The HVA Foods Limited will make Sri Lanka a one-stop-shop (OSS) for tea-based products and will have a worldwide distribution, HVA Foods Limited Chairman, Rohan Fernando said at a press conference yesterday.

The HVA Foods Limited yesterday announced its intention to raise Rs 319 million from the Initial Public Offering (IPO) of 30 percent of its stake by listing on the Dirisavi Board of the Colombo Stock Exchange (CSE).

The company will offer 19,928,598 million ordinary voting shares at Rs 16 per share. The IPO will open on January 12 and if it is oversubscribed the company will commence trading in early February.

He said under the Heladiv brand they have experimented and introduced a range of innovative products that are bound to further excite the customer. Within the next 12 to 18 months the company is planning to introduce a tea tablet, which is good for diabetics and for heart illnesses.

“The beverage market is primarily driven on health basis. Consumers are much keen on the non-carbonated products and tea as a beverage has a strong market. The demand for tea will only increase, where tea will emerge with much potential,” Fernando said.

China, Russia and India are the largest tea consuming markets and in the near future HVA Foods will venture into the Indian market.

Heladiv iced tea range is now available on board in SriLankan Airlines and Mihin Lanka.

The Asian Development Bank (ADB) has approved to provide low interest loans for the Company as it is a zero waste product company.

Price Water Coopers has conducted a value assessment of the brand in October last year and has valued Heladiv brand to be in the range of US$ 1.08 million to US$ 1.24 million. CdeS