Thursday Nov 28, 2024
Thursday Nov 28, 2024
Monday, 4 April 2022 03:55 - - {{hitsCtrl.values.hits}}
Given the short-term uncertainty prevailing in the capital markets as well as the power outages expected to continue during the month of April, the Board of CL Synergy have decided to postpone its Initial Public Offering (IPO) which was scheduled to open on 7 April.
The new dates will be notified once the short-term uncertainties prevailing in the market subside, CL Synergy said in a statement.
It also said that the Board of Directors of CL Synergy are encouraged by the overall investor interest and response towards the IPO, especially from the high net worth individuals who have seen the value proposition and business model of the company.
“When we embarked on the IPO journey, it was not clear to us how much marketing queries and sales inquiries would increase on the back of the public profiling of CL Synergy, through the IPO process. For a group that has built its business on long-term customer relationships, we are indeed encouraged by the new relationships we have created during this journey towards the IPO. No sooner market positions improve, we will re-double our efforts and bring CL Synergy to the investor public,” CL Synergy Managing Director Roshan Silva said.
Although market conditions have deteriorated, particularly in the last week, the Synergy business model is well intact, and is ideally positioned in the present economic environment, with a majority of its revenue derived from dollar earnings.
Given that 70% of the company’s business volume comes from exporters, it is expected that the recent devaluation to significantly improve the competitiveness of their customers in global markets and in turn will result in substantial freight volumes increase for CL Synergy.
“We will communicate our quarterly performance and business highlights in the public domain and are happy to note that we have exceeded analyst expectations for the year that we just concluded on 31 March. On behalf of the Synergy family, I would like to take this opportunity to thank our friends, well-wishers and the new investor community who rallied around us during this journey towards the IPO,” Silva added.
