Expolanka IPO opens on May 12

To raise Rs 2.4 billion for expansion:

Indunil HEWAGE

Taking a leap from a family run business to a public quoted company, Expolanka Holdings Limited announced the launch of their Initial Public Offering (IPO) to list the company on the main board of the Colombo Stock Exchange to raise Rs 2.4 billion yesterday.

The company will issue 172 million ordinary voting shares at an offer price of Rs 14.

Post IPO issued shares would be 1.95 billion shares.

Expolanka officials announcing the IPO at the press conference yesterday.                                                       Picture by Rukmal Gamage

The opening date of the issue will be on May 12 and will close on June 2.

The main objective of the issue will be to increase the working capital by Rs 1 billion.

The company will go for an expansion of existing warehouse capacity to supplement the group’s expansion into local transport and logistics sector which is the core business of the company with Rs 500 million.

In addition the reduction of long term debt outstanding would be one of the objectives of the issue.

Expolanka Group CEO Hanif Yusoof invited all to explore opportunities in a Sri Lankan company spreading its wings in the globe.

“We are on the look out to expand our presence in the fields of travel and tourism with market expansions in China and India, tertiary education, business process outsourcing, agriculture, commodity trading, tea, herbal pharmaceuticals and others,” he said.

“We need to raise our working capital to support revenue growth of the company and are going for bridging finance.

“We do not want to go for an overtrading situation and has managed to control the growth over a period. Sizeable free float of the issue will also assist Sri Lankan based investors exposure to a fast growth regional business,” Expolanka Holdings Chief Finance Officer Mushtaq Ahamed said.

Under the future strategies of the company, the company expects to go for a branch expansion plan in the Southern province to facilitate increased business potential from new infrastructure in the Colombo and Hambantota ports.

In the international trading sector, the company plans to increase production capacity to meet the demand for export produce whilst strengthening the network for packed tea both locally and globally.

The company will also move into new regions in waste paper market activities and is also positioned to develop a metal trading service in the local market.