Softlogic to raise Rs 4b via biggest Lanka IPO

Softlogic plans to raise Rs 4 billion ($36.4 million) through an initial public offering in June, the biggest in Sri Lanka in six years.

The information technology-led diversified firm is selling 137.9 million shares or 17 percent of the company, which is the exclusive distributor for Nokia handsets and Dell computers in Sri Lanka. "In terms of IPO, we are raising 4 billion rupees and it has been approved by Colombo Stock Exchange and shares will be priced at 29 rupees each," Ashok Pathirage, the chairman and managing director of Softlogic, told Reuters in an interview on Monday. The IPO, the biggest in the $50 billion economy since top mobile firm operator Dialog Axiata listed in July 2005, will help to retire some short-term debt and expand the firm.

"Most of the (IPO) money will be used for retiring short-term debts. We have already done some financing pending the IPO. We have purchased hotels and a stake in Asiri Hospital. So we will pay all that with the IPO funding." Softlogic also has operations in healthcare, retail, automobile, leisure and financial sectors with expansion plans for almost all sectors on the cards. The firm is also the sole distributor for some of the world renowned brands such as Panasonic, Samsung, Levis, and Nike in Sri Lanka, while managing Asiri Hospital , one of the top private healthcare providers in the country.

"The reason for the IPO is we have debts and we are expanding. We see there is so much of potential in Sri Lanka in most of those sectors what we are representing," Pathirage said. "So obviously we need to capitalize on that. We don't want to make this company 10 times bigger in 10 years. We want to make it 10 times bigger in four years," he said.

Reuters