LCB Finance announces CSE listing with Rs. 500 m IPO

Lanka Credit & Business Finance Ltd., (LCB Finance) is going public with a groundbreaking initiative by entering the Colombo stock market with a Rs. 500 million issue, offering 15.82% stake, 125 million shares at Rs. 4 each.

LCB Finance Chairman Prof. Abeyrathna Bandara

LCB Finance CEO/Executive Director  K.G. Leelananda

The price to book value is 1.26 and financial advisor NDB Investment Bank is promoting the IPO as 7.7% discount to the upper limit.

LCB Finance said it is listing on the CSE to meet the dual objectives of fulfilling its regulatory core capital requirement and financing. LCB Finance is a licensed finance company under the supervision and regulation of the Central Bank of Sri Lanka.

LCB has eight branches and its assets are worth Rs. 3.7 billion as at end of F/Y 2021, income is Rs. 461.4 million. while pre-tax profit is Rs. 100 million. Total shareholders’ funds amount to Rs. 2.1 billion with 4.75% returns over equity. Moreover, LCB has a customer base of over 26,000.

LCB has grown considerably with Business Loans, Micro Loans, Leasing, Gold Loans, and Savings products gradually. 

Commenting on the financial condition of the company, LCB Finance CEO/Executive Director K.G. Leelananda stated that it recorded a substantial growth during the period 2020/2021 under the current economic background. As at end-April 2021 the total capital funds reached Rs. 2,175 million, the Capital Adequacy Ratios was 51.78%, and the total Credit Portfolio reached Rs. 2.7 billion, whilst all branches were operating profitably. 

LCB Finance has been awarded the ‘Emerging Finance Company of the Year 2019’ and ‘Fastest Growing Non-Banking Financial Firm in Sri Lanka 2021’ at the Global Economics Awards 2021 in UK.

The CEO further stated that the immense guidance, proper directions and active participation were the driving forces of the Board of Directors that led to the achievement of the said award whilst considering their past financial statements as well, which also reflects all of the efforts that have been put forth in taking the company to greater heights. This is still a journey and not a destination for the company.

LCB has plans to grow exponentially via a digital transformation plan. LCB’s current digitalisation will be further enhanced to make LCBF a fully-fledged digital entity with seamless digital connectivity between clients and the LCB branches, the company said in its statement.