Access Engineering in Rs 500 m IPO

Indunil Hewage

Access Engineering Limited , one of the leading construction and engineering companies in Sri Lanka recently announced its plan to go for a Rs 500 million Initial

Public Offering (IPO) and will offer 20 million ordinary voting shares to the public at Rs 25 each . The company will go for a IPO to party finance the working capital requirement of housing projects to the value of Rs 3 billion undertaken by the company on behalf of the Urban Development Authority.

The issue opens on March 6, 2012 and close on March 15, 2012. The minimum subscription amount would be Rs 400 shares and these shares would be initially listed on the Diri Savi Board of CSE . The company was also able to complete the Rs 4.5 billion share issue last year by placing 180 million shares at an issue price of Rs 25 each, a 18% stake of the company’s post IPO. The founders of Access Engineering company also gifted Rs 3 billion worth of shares to its employees , a 12 % stake of the company recently.

Commenting on the IPO, Access Engineering Limited Chairman Sumal Perera said ‘this is an important millstone in our journey. We are the first company to go for an IPO in Sri Lanka in the construction and engineering category.

Accees Engineering would be ranked within the top 20 corporate entities after the IPO. I believe that this will enhance our image visibility and brand. Engineering and construction industry is one of the thriving businesses in Sri Lanka and we are optimistic that we will be able to contribute a lot to the development of the country.