LOLC General Insurance Rs. 948 m IPO opens on 16 Dec.

LOLC General Insurance Chief Executive Officer Kithsiri Gunawardena

LOLC General Insurance Ltd. has announced an Initial Public Offering (IPO) which will open on 16 December. 120,000,000 shares held by LOLC Asset Holdings Ltd. will be offered for sale at a price of Rs. 7.90 per share. 

The offer size will amount to Rs. 948 million. Post IPO LOLC Group Companies; LOLC Asset Holdings Ltd. will have a shareholding of 63.75% and LOLC Financial Sector Holdings Ltd. will have a shareholding of 26.25%. LOLC General Insurance Ltd. is one of the fastest growing general insurance companies in Sri Lanka. The company has been operating in the insurance industry for over 10 years and has established itself as a key player within the industry.

The LOLC Group is one of Sri Lanka’s largest diversified financial conglomerates with international presence. Being part of such a large conglomerate enables LOLC General Insurance to benefit through synergies within the Group. LOLC General Insurance has a steady stream of business from captive channels within the LOLC Group’s finance and leasing operations. In addition, the company has strong partnerships and tie ups with non-captive channels that contribute to the growth in Gross Written Premiums. 

Leveraging on the LOLC Group’s global synergies and expansions, LOLC General Insurance has expanded its operation into Cambodia. The company currently owns a 45% stake in Serendib Micro Insurance PLC in Cambodia. Furthermore, the company is well-placed to replicate its strategy in Sri Lanka in the future and in other offshore markets where LOLC Group has already an established presence. 

LOLG General Insurance Chief Executive Officer Kithsiri Gunawardena stated, “We are excited with the prospect of being able to highlight our performance and share our success with the public by becoming Listed on the Colombo Stock Exchange. Strong reliance on the latest technology, innovative thinking and the commitment of our staff to provide exceptional customer service has propelled the company to become the fastest growing General Insurance company. With our aggressive growth strategies, we are confident of creating much greater value for all our shareholders.” 

The IPO is managed by Capital Trust Partners Ltd. and PW Secretarial Ltd. The IPO price per share of Rs. 7.90 offers an immediate upside of 49.4% to an incoming investor on the value per share of Rs. 11.80; derived from a combination of discounted cash flow (DCF) and forward-earnings ratio (PER) valuation method.

Interested parties can visit the IPO website, ipo.capitaltrust.lk, to obtain more information on the process and applications. Capital Trust Partners Ltd. will be hosting webinars and discussions that are open to the investors in order for them to make an informed decision.