LTL Holdings’ mega Rs. 20 b IPO up for subscription from 2 September

LTL Holdings Ltd.’s Rs. 20 billion Initial Public Offering (IPO), one of the biggest in recent times, will be up for subscription from Monday, 2 September whilst its official opening is on 10 September.

The Colombo Stock Exchange said this week it has approved, in-principle, an application submitted by LTL Holdings for the listing of its Ordinary Voting Shares by way of an Offer for Subscription on the Main Board or Diri Savi Board of the CSE.

Of the Offer for Subscription the Initial issue will be 1,103,448,300 Ordinary Voting Shares at Rs. 14.50 per share raising Rs. 16 billion and there will be a further issuance of 275,862,100 Ordinary Voting Shares at Rs. 14.50 per share worth Rs. 4 billion.

LTL has extensive interests in renewable (26MW capacity of hydro power and wind power plants in Sri Lanka and Nepal) and non-renewable energy (combined cycle and engine-based power plants with 868 MW capacity in Sri Lanka and Bangladesh), manufacturing (produces up to 4,000 distribution transformers annually in Sri Lanka and a facility in India specialising in production of low and medium voltage switchgear products) as well as heavy engineering and services.

State utility Ceylon Electricity Board owns 35% in LTL whilst other shareholders are West Coast Power Ltd., (28%), Peradev Ltd., (27%) and Teckpro Investment Ltd. (10%).

The joint financial advisors and managers to the IPO are NDB Investment Bank Ltd., and CT CLSA Capital Ltd.

Copies of the prospectus will be available at broker firms from 2 September.