Wednesday 12 February 2014
Sri Lankan shares fall to near 5-wk closing low; foreign selling drops
Feb 12 (Reuters) - Sri Lankan shares fell to their lowest close in nearly five weeks on Wednesday in thin trading volume as investors sold large caps to book profit.
The market came under pressure even though foreign selling in the island nation's risky assets dropped sharply.
Foreign investors sold net 10.6 million rupees worth of shares on Wednesday, much less than the daily average 1.15 billion rupees ($8.79 million) in the past four sessions, Stock Exchange data showed.
The bourse witnessed a net foreign outflow of 4.62 billion rupees in the last five sessions through Wednesday.
The main stock index lost 0.47 percent, or 28.67 points, at 6,084.48, its lowest close since Jan. 10. It has lost 2.6 percent in the last seven sessions through Wednesday.
Analysts said the foreign selloff in emerging markets was the reason for the exit of some offshore funds with profits.
Market heavyweight Ceylon Tobacco Company fell 1.62 percent to 1,240 rupees.
The bourse has seen 3.23 billion rupees of foreign outflow so far in 2014, after enjoying a net inflow of 22.88 billion rupees last year.
Analysts say local investors are active in the market after interest rates on treasury bills eased to multi-year lows, making fixed-income assets unattractive.
The index, however, has risen 2.90 percent so far this year, following a 4.8 percent gain in 2013. It fell in the previous two years.
The day's turnover was 548.6 million rupees, less than this year's daily average of about 1.24 billion rupees. The market has witnessed an average 1.71 billion rupees in the seven straight sessions through Tuesday, which analysts attributed to active local investment funds and institutional investors.
Analysts said investors have been waiting for directions from December-quarter earnings and an upcoming UNHRC session in March where Sri Lanka is facing a US-sponsored resolution for alleged human rights violations.
Stockbrokers said investors will shrug off political risks from renewed pressure by the United States to bring a fresh resolution against Sri Lanka at the UNHRC meeting in March, because the market had been expecting the worst.
The market came under pressure even though foreign selling in the island nation's risky assets dropped sharply.
Foreign investors sold net 10.6 million rupees worth of shares on Wednesday, much less than the daily average 1.15 billion rupees ($8.79 million) in the past four sessions, Stock Exchange data showed.
The bourse witnessed a net foreign outflow of 4.62 billion rupees in the last five sessions through Wednesday.
The main stock index lost 0.47 percent, or 28.67 points, at 6,084.48, its lowest close since Jan. 10. It has lost 2.6 percent in the last seven sessions through Wednesday.
Analysts said the foreign selloff in emerging markets was the reason for the exit of some offshore funds with profits.
Market heavyweight Ceylon Tobacco Company fell 1.62 percent to 1,240 rupees.
The bourse has seen 3.23 billion rupees of foreign outflow so far in 2014, after enjoying a net inflow of 22.88 billion rupees last year.
Analysts say local investors are active in the market after interest rates on treasury bills eased to multi-year lows, making fixed-income assets unattractive.
The index, however, has risen 2.90 percent so far this year, following a 4.8 percent gain in 2013. It fell in the previous two years.
The day's turnover was 548.6 million rupees, less than this year's daily average of about 1.24 billion rupees. The market has witnessed an average 1.71 billion rupees in the seven straight sessions through Tuesday, which analysts attributed to active local investment funds and institutional investors.
Analysts said investors have been waiting for directions from December-quarter earnings and an upcoming UNHRC session in March where Sri Lanka is facing a US-sponsored resolution for alleged human rights violations.
Stockbrokers said investors will shrug off political risks from renewed pressure by the United States to bring a fresh resolution against Sri Lanka at the UNHRC meeting in March, because the market had been expecting the worst.
($1 = 130.8250 Sri Lanka rupees)
(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Subhranshu Sahu)
Sri Lanka stocks close 0.4-pct down
Feb 12, 2014 (LBO) – Sri Lanka stocks close down Wednesday with tobacco and finance stocks losing ground, brokers said.
The Colombo benchmark All Share Price Index closed 28.67 points lower at 6,084.48, down 0.47 percent. The S&P SL20 closed 12.39 points lower at 3,336.96, down 0.37 percent.
Turnover was 548.63 million rupees, down from 1.98 billion rupees a day earlier, with stocks of 127 firms closing in the red against 39 gainers.
Distilleries closed 1.60 rupees higher at 217.20 rupees with 91.50 million rupees of off market transactions contributing to 17 percent of the turnover.
The aggregate value of all off market deals only accounted for 34 percent of the daily market turnover.
JKH’s W0022 warrants closed 60 cents lower at 62.60 rupees and its W0023 warrants closed 10 cents lower at 65.00 rupees, attracting most number of trades during the day.
Foreigners bought 172.21 million rupees worth shares while selling 182.78 million rupees of shares.
Ceylon Tobacco Company closed 20.40 rupees lower at 1,240.00 rupees and Commercial Leasing and Finance closed 20 cents lower at 4.00 rupees, contributing most to the index drop.
Dialog closed 10 cents lower at 9.10 rupees and Cargills Ceylon closed 3.00 rupees lower at 148.00 rupees.
SLT closed 1.30 rupees higher at 41.30 rupees and JKH closed 50 cents higher at 225.30 rupees.
Bukit Darah ended 3.60 rupees lower at 600.40 rupees and Carson Cumberbatch ended flat at 357.00 rupees.
Nestle Lanka also ended flat at 2,100.00 rupees.
The Colombo benchmark All Share Price Index closed 28.67 points lower at 6,084.48, down 0.47 percent. The S&P SL20 closed 12.39 points lower at 3,336.96, down 0.37 percent.
Turnover was 548.63 million rupees, down from 1.98 billion rupees a day earlier, with stocks of 127 firms closing in the red against 39 gainers.
Distilleries closed 1.60 rupees higher at 217.20 rupees with 91.50 million rupees of off market transactions contributing to 17 percent of the turnover.
The aggregate value of all off market deals only accounted for 34 percent of the daily market turnover.
JKH’s W0022 warrants closed 60 cents lower at 62.60 rupees and its W0023 warrants closed 10 cents lower at 65.00 rupees, attracting most number of trades during the day.
Foreigners bought 172.21 million rupees worth shares while selling 182.78 million rupees of shares.
Ceylon Tobacco Company closed 20.40 rupees lower at 1,240.00 rupees and Commercial Leasing and Finance closed 20 cents lower at 4.00 rupees, contributing most to the index drop.
Dialog closed 10 cents lower at 9.10 rupees and Cargills Ceylon closed 3.00 rupees lower at 148.00 rupees.
SLT closed 1.30 rupees higher at 41.30 rupees and JKH closed 50 cents higher at 225.30 rupees.
Bukit Darah ended 3.60 rupees lower at 600.40 rupees and Carson Cumberbatch ended flat at 357.00 rupees.
Nestle Lanka also ended flat at 2,100.00 rupees.
BRAC Lanka Finance rating upgraded: RAM
Feb 12, 2014 (LBO) - RAM Ratings Lanka said it had upgraded a 'BB-' rating of BRAC Lanka Finance Plc (formerly Nanda Investments, by two levels to 'BB+' following an ownership change. l
The rating has a stable outlook.
Bangladesh-based BRAC bought into the firm and RAM said support was expected from the parent.
The company's gross non performingloans had risen from 6.45 percent in September 2013 from 4.86 percent in March.
However it had strong capital adequacy with 40 percent Tie-I capital.
The full statement is reproduced below:-
RAM Ratings Lanka upgrades BRAC Lanka Finance PLC’s ratings to BB+/Stable/NP
RAM Ratings Lanka has upgraded BRAC Lanka Finance PLC’s (BRLF or the Company, previously known as Nanda Investments and Finance PLC (Nanda)) long-term financial institution ratings to BB+ from BB-. At the same time, the short-term rating has been reaffirmed at NP.
Meanwhile, the Positive Rating Watch on the Company has been lifted and the stable outlook on the long-term rating has been reinstated.
In July 2013, RAM Ratings Lanka placed BRLF’s long and short-term ratings on Rating Watch (with a positive outlook) premised on the positive contributions of the new shareholders’ following the change in ownership of the Company. The Company has since taken steps to align its strategies with that of its ultimate parent BRAC Bangladesh (BRAC) through board representation and appointment of senior management. Therefore, given BRAC’s good financial position, its majority shareholding in BRLF through BRAC Lanka Investments Pvt Ltd and the steps taken to realign BRLF’s strategies with that of BRAC, we opine support would be forthcoming in times of need.
Meanwhile, BRLF’s ratings are tempered by its below average asset quality while the ratings are upheld by parental support derived from its ultimate parent, BRAC and the Company’s strong capital adequacy. Therefore, the ratings will be pressured in the event that BRAC’s shareholding falls below 51%.
BRAC is one of the largest development organizations in the world in terms of people served. While the organization is based in Bangladesh it has global presence in 11 countries including Sri Lanka where it operates as BRAC Lanka (Guarantee) Ltd (BLG) and focuses on rural upliftment through the provision of micro-finance facilities.
In June 2013, BRAC acquired a majority stake of 56.60% in BRLF through BRAC Lanka Investment Pvt Ltd. Following the change in ownership, BRLF which previously engaged in hire purchase (HP) and leasing of second-hand luxury vehicles is expected to expand its portfolio into micro financing, in line with the core operations of BRAC.
BRLF’s asset quality is viewed to be below average owing to an influx of new non-performing loans (NPL) resulting in a worsening gross NPL ratio that compared weaker than peers’. The Company’s absolute gross NPLs surged 2-folds to LKR 16.04 million in FYE 31 March 2013 (FY Mar 2013), increasing a further 35.92% to LKR 21.79 million in 1H FY Mar 2014, reflective of the Company’s target customer segment that is susceptible to business volatility.
As such, BRLF’s gross NPL ratio deteriorated to 6.45% as at end-Sept 2013 from 4.86% as at FY Mar 2013 (FY Mar 2012: 2.69%). Going forward, in line with the new management’s focus on expanding its portfolio in micro financing, BRLF’s risk profile is likely to change given that these facilities are uncollateralized and are extended to the low income stratum of society. However, we note that the Company intends on managing the higher risk by leveraging on the expertise of BLG and parent company BRAC.
BRLF’s performance is viewed as average reflective of the Company’s net interest margin (NIM) remaining in line with peers on the back of lower funding costs coupled with the Company’s low cost operating model. In view of the Company’s funding structure which was dominated by low cost shareholders’ funds, BRLF’s NIM remained comparable against peers at 20.47% in fiscal 2013 (fiscal 2012: 18.50%); however the NIM declined slightly to 18.93% in 1H FY Mar 2014, amid slower loan growth with excess funds being channeled toward lower yielding liquid assets. Meanwhile, BRLF’s cost-to-income ratio of 64.60% in FY Mar 2013 (calculated excluding the revaluation gain) improved marginally from 68.37% a year earlier and compared in line with peers, reflective of it low-cost operating model.
Going forward, we expect BRLF’s core performance to improve given the management’s intentions to expand into the higher yielding micro finance segment, while overall performance is likely to be weighed down by a potential increase in overhead costs given geographical expansion.
BRLF’s funding base continues to be dominated by shareholders’ funds, which fulfilled 83.33% of its funding needs as at end-FY Mar 2013. Despite an 80.97% y-o-y increase in its deposit base in FY Mar 2013 we note that BRLF’s deposit garnering ability remains weaker than peers hampered by its weak franchise and dependence on a single branch for accepting deposits. That said, given BRLF’s access to borrowings at concessionary rates (around 8%-9%) from BRAC, its funding composition is expected to tilt toward borrowings in the medium to long term. Elsewhere, BRLF’s liquidity position is viewed to be strong; its statutory liquid asset ratio improved to 49.56% as at end-FY Mar 2013 (FY Mar 2012: 35.70%) however declining slightly to 35.33% as at end-Sept 2013. The ratio compared well above that of similarly-rated peers’.
BRLF’s capital adequacy is deemed strong. Its tier-1 and overall RWCARs clocked in at 40.92% as at end-FY Mar 2013 (end-FY Mar 2012: 40.88%) increasing to 43.18% as at end- Sept 2013 amid slower loan growth; the ratios are well above those of similar-rated peers. Elsewhere, BRLF’s core capital levels of LKR 273.24 million which stood below the regulatory minimum core capital requirement as at end-Sept 2013, has been addressed through a rights issue in January 2014.
The rating has a stable outlook.
Bangladesh-based BRAC bought into the firm and RAM said support was expected from the parent.
The company's gross non performingloans had risen from 6.45 percent in September 2013 from 4.86 percent in March.
However it had strong capital adequacy with 40 percent Tie-I capital.
The full statement is reproduced below:-
RAM Ratings Lanka upgrades BRAC Lanka Finance PLC’s ratings to BB+/Stable/NP
RAM Ratings Lanka has upgraded BRAC Lanka Finance PLC’s (BRLF or the Company, previously known as Nanda Investments and Finance PLC (Nanda)) long-term financial institution ratings to BB+ from BB-. At the same time, the short-term rating has been reaffirmed at NP.
Meanwhile, the Positive Rating Watch on the Company has been lifted and the stable outlook on the long-term rating has been reinstated.
In July 2013, RAM Ratings Lanka placed BRLF’s long and short-term ratings on Rating Watch (with a positive outlook) premised on the positive contributions of the new shareholders’ following the change in ownership of the Company. The Company has since taken steps to align its strategies with that of its ultimate parent BRAC Bangladesh (BRAC) through board representation and appointment of senior management. Therefore, given BRAC’s good financial position, its majority shareholding in BRLF through BRAC Lanka Investments Pvt Ltd and the steps taken to realign BRLF’s strategies with that of BRAC, we opine support would be forthcoming in times of need.
Meanwhile, BRLF’s ratings are tempered by its below average asset quality while the ratings are upheld by parental support derived from its ultimate parent, BRAC and the Company’s strong capital adequacy. Therefore, the ratings will be pressured in the event that BRAC’s shareholding falls below 51%.
BRAC is one of the largest development organizations in the world in terms of people served. While the organization is based in Bangladesh it has global presence in 11 countries including Sri Lanka where it operates as BRAC Lanka (Guarantee) Ltd (BLG) and focuses on rural upliftment through the provision of micro-finance facilities.
In June 2013, BRAC acquired a majority stake of 56.60% in BRLF through BRAC Lanka Investment Pvt Ltd. Following the change in ownership, BRLF which previously engaged in hire purchase (HP) and leasing of second-hand luxury vehicles is expected to expand its portfolio into micro financing, in line with the core operations of BRAC.
BRLF’s asset quality is viewed to be below average owing to an influx of new non-performing loans (NPL) resulting in a worsening gross NPL ratio that compared weaker than peers’. The Company’s absolute gross NPLs surged 2-folds to LKR 16.04 million in FYE 31 March 2013 (FY Mar 2013), increasing a further 35.92% to LKR 21.79 million in 1H FY Mar 2014, reflective of the Company’s target customer segment that is susceptible to business volatility.
As such, BRLF’s gross NPL ratio deteriorated to 6.45% as at end-Sept 2013 from 4.86% as at FY Mar 2013 (FY Mar 2012: 2.69%). Going forward, in line with the new management’s focus on expanding its portfolio in micro financing, BRLF’s risk profile is likely to change given that these facilities are uncollateralized and are extended to the low income stratum of society. However, we note that the Company intends on managing the higher risk by leveraging on the expertise of BLG and parent company BRAC.
BRLF’s performance is viewed as average reflective of the Company’s net interest margin (NIM) remaining in line with peers on the back of lower funding costs coupled with the Company’s low cost operating model. In view of the Company’s funding structure which was dominated by low cost shareholders’ funds, BRLF’s NIM remained comparable against peers at 20.47% in fiscal 2013 (fiscal 2012: 18.50%); however the NIM declined slightly to 18.93% in 1H FY Mar 2014, amid slower loan growth with excess funds being channeled toward lower yielding liquid assets. Meanwhile, BRLF’s cost-to-income ratio of 64.60% in FY Mar 2013 (calculated excluding the revaluation gain) improved marginally from 68.37% a year earlier and compared in line with peers, reflective of it low-cost operating model.
Going forward, we expect BRLF’s core performance to improve given the management’s intentions to expand into the higher yielding micro finance segment, while overall performance is likely to be weighed down by a potential increase in overhead costs given geographical expansion.
BRLF’s funding base continues to be dominated by shareholders’ funds, which fulfilled 83.33% of its funding needs as at end-FY Mar 2013. Despite an 80.97% y-o-y increase in its deposit base in FY Mar 2013 we note that BRLF’s deposit garnering ability remains weaker than peers hampered by its weak franchise and dependence on a single branch for accepting deposits. That said, given BRLF’s access to borrowings at concessionary rates (around 8%-9%) from BRAC, its funding composition is expected to tilt toward borrowings in the medium to long term. Elsewhere, BRLF’s liquidity position is viewed to be strong; its statutory liquid asset ratio improved to 49.56% as at end-FY Mar 2013 (FY Mar 2012: 35.70%) however declining slightly to 35.33% as at end-Sept 2013. The ratio compared well above that of similarly-rated peers’.
BRLF’s capital adequacy is deemed strong. Its tier-1 and overall RWCARs clocked in at 40.92% as at end-FY Mar 2013 (end-FY Mar 2012: 40.88%) increasing to 43.18% as at end- Sept 2013 amid slower loan growth; the ratios are well above those of similar-rated peers. Elsewhere, BRLF’s core capital levels of LKR 273.24 million which stood below the regulatory minimum core capital requirement as at end-Sept 2013, has been addressed through a rights issue in January 2014.
Serendib Group shows record occupancies, but nine months loss
Ceylon FT: The Serendib Group, a part of Hemas Holdings, reported record occupancies of over 80% at all hotels in the third quarter except Hotel Sigiriya, which was in line with the forecast of 71%. Despite this, the group showed losses of Rs 16 million for the nine months to 31 December 2013, down 110% from the previous corresponding period which had showed a Group profit of Rs 158 million.
Within the Group, the company's loss in the 9 months was 6.4 million, down 111% comparatively.
Group revenue for the period fell to Rs 710 million a drop of 25% over the corresponding 9 months.
The Group recorded a revenue of Rs 371.7 million for the last three reported months, which was virtually unchanged from the corresponding period in 2012/13, despite the partial closure of Club Hotel Dolphin.
The Group attributes the losses to refurbishment during the year, Hotel Sigiriya and Club Hotel Dolphin were closed for 3 and 6 months respectively, adversely affecting results.
The company also reports that Avani Bentota also performed below expectations in the first quarter of the current financial year.
Avanti Kalutara however received an award 'Top Hotel 2014' by the travel site, Holiday Check.
A 'satisfactory' 4th quarter is anticipated by the Managing Director Ranil De Silva. The Serendib Leisure Hotels Group comprises Serendib Hotels PLC and its subsidiaries Dolphin Hotels PLC, Sigiriya Hotels PLC and Serendib Leisure Management Ltd.
The Group currently manages Avani Bentota Resort & Spa, Avani Kalutara Resort, Club Hotel Dolphin and Hotel Sigiriya totalling 410 rooms. The share price fluctuated between a high of Rs 30 and low of Rs 24 during the nine months.
www.ceylontoday.lk
AIA Insurance Lanka profits down
Ceylon FT: AIA Insurance Lanka PLC reported a net profit of Rs 499.3 million for the year ended December 2013, down 41% from Rs 847.9 million a year ago, interim financial results showed.
Net premium income fell marginally to Rs 8.19 billion, down from Rs 8.24 billion a year ago. Investment income grew to Rs 4.4 billion, up from Rs 4.02 billion a year ago.
Total revenue grew to Rs 12.99 billion, up from Rs 12.62 billion a year ago.
Net claims and benefits paid increased to Rs 6.75 billion, up 61% from Rs 4.18 billion a year ago and operating and administrative expenses grew to Rs 3.83 billion, up 43% from Rs 2.68 billion a year ago.
Basic earnings per share amounted to Rs 16.64, down from Rs 28.26 last year.
Revenue from life insurance amounted to Rs 10.47 billion in 2013, up from Rs 10 billion a year ago, and revenue from non-life insurance amounted to Rs 2.52 billion, up from Rs 1.96 billion a year ago.
Profits from the life insurance segment grew to Rs 200 million, up from Rs 195 million a year ago, and profits from the non-life segment fell to Rs 298.5 million, down from Rs 645.2 million in 2012.
www.ceylontoday.lk
HNB Assurance reports significant acceleration in growth
HNB Assurance PLC has reported a sharp increase in its turnover during the year ended 31 December 2013 recording a 21% growth compared to the moderate growth of 8% achieved in 2012. This growth was largely fuelled by the Life sector which recorded an impressive 34% growth while the General sector also improved its performance greatly to deliver a growth of 9%. The company’s growth in the Life sector was well above the market growth while its growth in General Insurance was on par with the market.
HNB Assurance also reported a healthy 11% growth in its Profit After Tax maintaining its excellent track record of consistently delivering growth in both turnover and profits, a difficult task in the highly competitive insurance market. This enabled the company to declare an attractive dividend of Rs. 3.25 per share recording an 18% growth in the dividend distribution.
A striking feature in HNB Assurance’s performance is that a similar contribution was made towards profits by both Life and General business. The company’s General Insurance portfolio generated a Profit After Tax of Rs. 207.6 million with a 12% growth over the previous year while it’s Life Insurance portfolio contributed a Profit After Tax of Rs. 181.5 million recording a growth of 10%.
HNB Assurance PLC is one of the fastest growing insurance companies in Sri Lanka with a network of 51 branches. HNBA is a composite Insurance company with a rating of A (lka) by Fitch Rating Lanka for “National Insurer Financial Strength Rating” and “National Long- term Rating”. HNBA is also rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance recently won International awards for Brand Excellence and HR Excellence and also won many awards for its Annual Reports at the Award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka, ACCA Sri Lanka (Association of the Chartered Certified Accountants) and SAFA (South Asian Federation of Accountants)
www.ft.lk
HNB Assurance also reported a healthy 11% growth in its Profit After Tax maintaining its excellent track record of consistently delivering growth in both turnover and profits, a difficult task in the highly competitive insurance market. This enabled the company to declare an attractive dividend of Rs. 3.25 per share recording an 18% growth in the dividend distribution.
A striking feature in HNB Assurance’s performance is that a similar contribution was made towards profits by both Life and General business. The company’s General Insurance portfolio generated a Profit After Tax of Rs. 207.6 million with a 12% growth over the previous year while it’s Life Insurance portfolio contributed a Profit After Tax of Rs. 181.5 million recording a growth of 10%.
This is the second successive year in which General Insurance accounted for a larger share of the profit. According to HNB Assurance Managing Director Manjula de Silva: “The company has dispelled the widely held belief that General Insurance business has to be subsidised by Life Insurance by demonstrating that both lines of business can be operated at a similar level of profitability.”
HNB Assurance PLC is one of the fastest growing insurance companies in Sri Lanka with a network of 51 branches. HNBA is a composite Insurance company with a rating of A (lka) by Fitch Rating Lanka for “National Insurer Financial Strength Rating” and “National Long- term Rating”. HNBA is also rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance recently won International awards for Brand Excellence and HR Excellence and also won many awards for its Annual Reports at the Award ceremonies organised by the Institute of Chartered Accountants of Sri Lanka, ACCA Sri Lanka (Association of the Chartered Certified Accountants) and SAFA (South Asian Federation of Accountants)
www.ft.lk
Senthilverl triggers takeovers code at Orient Garments
Low profile but high networth investor Dr. T. Senthilverl has triggered the SEC Takeovers and Mergers Code on Orient Garments PLC (OGL).
This is following Dr. Senthilverl buying 8.4 million shares or 15.3% stake in OGL for Rs. 71.4 million. The acquisition saw his overall stake increasing to 37.9% or 20.8 million shares.
Dr. Senthilverl has said he will be making a mandatory offer at Rs. 8.50 per share on Monday, he was appointed to OGL Board.
In December Adam Investments Ltd acquired control of OGL with a 40% stake with S.H.M. Rishan’s PCH Holdings becoming a minority shareholder with 21% stake.
www.ft.lk
This is following Dr. Senthilverl buying 8.4 million shares or 15.3% stake in OGL for Rs. 71.4 million. The acquisition saw his overall stake increasing to 37.9% or 20.8 million shares.
Dr. Senthilverl has said he will be making a mandatory offer at Rs. 8.50 per share on Monday, he was appointed to OGL Board.
In December Adam Investments Ltd acquired control of OGL with a 40% stake with S.H.M. Rishan’s PCH Holdings becoming a minority shareholder with 21% stake.
www.ft.lk
Alumex comes with Rs. 839 m IPO
Hayleys Plc subsidiary Alumex Ltd., has announced a Rs. 839 million Initial Public Offering as part of listing on the Colombo Stock Exchange.
The Colombo Stock Exchange (CSE) has approved in principle an application submitted by Alumex Ltd., for the listing of 59.9 million ordinary voting shares (comprising of an Offer for Subscription tranche of 17.9 million shares and an Offer for Sale tranche of 42 million shares) at Rs.14.00 per share.
The date of the opening of the subscription list is 6 March whilst the investing public can subscribe from 18 February.
Alumex is the leading manufacturer of aluminum extrusions and in November 2010 Hayleys acquired 95% stake in the Alumex Group for Rs. 2.2 billion.
NDB Investment Bank is the financial advisors and managers to the Alumex IPO.
www.ft.lk
The Colombo Stock Exchange (CSE) has approved in principle an application submitted by Alumex Ltd., for the listing of 59.9 million ordinary voting shares (comprising of an Offer for Subscription tranche of 17.9 million shares and an Offer for Sale tranche of 42 million shares) at Rs.14.00 per share.
The date of the opening of the subscription list is 6 March whilst the investing public can subscribe from 18 February.
Alumex is the leading manufacturer of aluminum extrusions and in November 2010 Hayleys acquired 95% stake in the Alumex Group for Rs. 2.2 billion.
NDB Investment Bank is the financial advisors and managers to the Alumex IPO.
www.ft.lk
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