Rs. 139 ‘reference price’ set, 65 for one share split pre-listing
Shares of Renuka Hotels PLC (previously Renuka Hotels Ltd.), the newest company listed on the Colombo Stock Exchange, quoted on the CSE by way of introduction, will begin trading on the Diri Savi board of the CSE from Nov. 21, the CSE announced last week.
The closely-held and largely family-owned and managed company, founded by the well known businessman and Kayts MP Alfred Thambiayah, built the Renuka Hotel on family owned property on Galle Road, Kollupitiya. The hotel was commissioned in 1972.
The 41-room Renuka Hotel is owned by Renuka Hotels Ltd. which has remained unlisted till now. But the company floated and took majority control of Renuka City Hotels PLC, a 58-room hotel built on an adjoining property, which was listed in 1992.
Prior to its introduction to the CSE, Renuka Hotels Ltd. with a modest stated capital of Rs. 6 million with 600,000 shares in issue unlocked its retained value built since inception by increasing its stated capital to Rs. 112.5 million with approx 40.3 million shares in issue by way of capitalization of reserves and a share split.
Reserves of Rs. 106.5 million were capitalized by the issue of one new share for every 30.0571 shares held in Aug. 2015 resulting in the issue of 19,962 new shares followed by a 65 for 1 share split the same day increasing the number of shares presently in issue to 40.3 million.
A ‘reference price’ of Rs. 139 per share has been set for the Renuka share by Chartered Accountants Wijeyeratne and Co. who had done an independent valuation of the company. They have placed a value of Rs.151.24 per share by the discounted cash flow method, Rs. 142.20 by the net assets value method and Rs. 89.77 by the earnings capitalization method.
"Based on the analysis, a value which is within the likely range of Rs. 151.24 to Rs. 89.77 per share can be justified. Hence the reference price of Rs. 139 per share can be considered fair and reasonably," they have said.
The ten largest shareholders of Renuka prior to the listing together owned 78.95% of the company according to the document of introduction. They are Ms. NA Thambiyah, Mr. RB Thambiayah/Ms. SR Thambiayah, Mr. RB Thamiayah/Ms. NR Thambiayah, Mr. R.B. Thambiayah/Ms. AL Thambiayah, Ms. IR Rajiyah, Mr. DJ Nirmalalingam, Mr. RB Thambiayah, Ms. SR Nirmalalingam, Mr. MJ Fernando and Cabraal Consulting Group Pvt. Ltd.
The 13 largest public shareholders pre-listing held 27.4% of the company. This group excludes Mr. Ravi (RB) Thambiayah and his children who run the company but include other family members including his sisters, nephew, brothers-in-law (Cabraal Consulting and Dr. SR Rajiyah) and prominent businessmen Merril. J. Fernando and his son, Dilhan, and Mr. M. Selvanathan.
Mr. Ravi Thambiayah and his daughters controlling and managing the business is not expected to sell down their holding but whether other family members would do so if the price is right remains to be seen, analysts said.
Mr. Thambiayah who trained at the Royal Lancaster Hotel in London after taking an economics degree, has managed the Renuka Hotel since 1972. He developed the group under the Renuka umbrella with group companies, including notably Renuka Hotels and Renuka City, building large quoted share portfolios with market values of over billion rupees including substantial unrealized capital gains.
Both Renuka and Renuka City posts earnings per share substantially above those of other hotel owning companies, both listed and unlisted.
Renuka shares can now be deposited in the Central Depository System and can be transacted, the CSE said.
The directors of Renuka Hotels are Ms. SR Thambiayah (Executive Chairperson and Joint MD), Ms. AL Thambiayah, Executive Joint MD, Mrs. SR Dominic, Messrs. Merril J Fernando, GU Nanayakkara, S. Nagendra, Mrs. M.A. Jayawardena (Executive Director/Company Secretary), Ms. NR Thambiayah and Mr. RN Asirwatham.
Shares of Renuka Hotels PLC (previously Renuka Hotels Ltd.), the newest company listed on the Colombo Stock Exchange, quoted on the CSE by way of introduction, will begin trading on the Diri Savi board of the CSE from Nov. 21, the CSE announced last week.
The closely-held and largely family-owned and managed company, founded by the well known businessman and Kayts MP Alfred Thambiayah, built the Renuka Hotel on family owned property on Galle Road, Kollupitiya. The hotel was commissioned in 1972.
The 41-room Renuka Hotel is owned by Renuka Hotels Ltd. which has remained unlisted till now. But the company floated and took majority control of Renuka City Hotels PLC, a 58-room hotel built on an adjoining property, which was listed in 1992.
Prior to its introduction to the CSE, Renuka Hotels Ltd. with a modest stated capital of Rs. 6 million with 600,000 shares in issue unlocked its retained value built since inception by increasing its stated capital to Rs. 112.5 million with approx 40.3 million shares in issue by way of capitalization of reserves and a share split.
Reserves of Rs. 106.5 million were capitalized by the issue of one new share for every 30.0571 shares held in Aug. 2015 resulting in the issue of 19,962 new shares followed by a 65 for 1 share split the same day increasing the number of shares presently in issue to 40.3 million.
A ‘reference price’ of Rs. 139 per share has been set for the Renuka share by Chartered Accountants Wijeyeratne and Co. who had done an independent valuation of the company. They have placed a value of Rs.151.24 per share by the discounted cash flow method, Rs. 142.20 by the net assets value method and Rs. 89.77 by the earnings capitalization method.
"Based on the analysis, a value which is within the likely range of Rs. 151.24 to Rs. 89.77 per share can be justified. Hence the reference price of Rs. 139 per share can be considered fair and reasonably," they have said.
The ten largest shareholders of Renuka prior to the listing together owned 78.95% of the company according to the document of introduction. They are Ms. NA Thambiyah, Mr. RB Thambiayah/Ms. SR Thambiayah, Mr. RB Thamiayah/Ms. NR Thambiayah, Mr. R.B. Thambiayah/Ms. AL Thambiayah, Ms. IR Rajiyah, Mr. DJ Nirmalalingam, Mr. RB Thambiayah, Ms. SR Nirmalalingam, Mr. MJ Fernando and Cabraal Consulting Group Pvt. Ltd.
The 13 largest public shareholders pre-listing held 27.4% of the company. This group excludes Mr. Ravi (RB) Thambiayah and his children who run the company but include other family members including his sisters, nephew, brothers-in-law (Cabraal Consulting and Dr. SR Rajiyah) and prominent businessmen Merril. J. Fernando and his son, Dilhan, and Mr. M. Selvanathan.
Mr. Ravi Thambiayah and his daughters controlling and managing the business is not expected to sell down their holding but whether other family members would do so if the price is right remains to be seen, analysts said.
Mr. Thambiayah who trained at the Royal Lancaster Hotel in London after taking an economics degree, has managed the Renuka Hotel since 1972. He developed the group under the Renuka umbrella with group companies, including notably Renuka Hotels and Renuka City, building large quoted share portfolios with market values of over billion rupees including substantial unrealized capital gains.
Both Renuka and Renuka City posts earnings per share substantially above those of other hotel owning companies, both listed and unlisted.
Renuka shares can now be deposited in the Central Depository System and can be transacted, the CSE said.
The directors of Renuka Hotels are Ms. SR Thambiayah (Executive Chairperson and Joint MD), Ms. AL Thambiayah, Executive Joint MD, Mrs. SR Dominic, Messrs. Merril J Fernando, GU Nanayakkara, S. Nagendra, Mrs. M.A. Jayawardena (Executive Director/Company Secretary), Ms. NR Thambiayah and Mr. RN Asirwatham.
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