CSE approves RIL Rs. 960 m IPO

Monday, 13 March 2017 00:03 - - {{hitsCtrl.values.hits}}

RIL Property Ltd. (RIL), a developer, owner and operator of commercial office space in Colombo, received in-principle approval from the Colombo Stock Exchange (CSE) for a listing of its ordinary voting shares through an Initial Public Offering (IPO).

RIL intends to offer 120 million ordinary voting shares to the public at Rs. 8 per share to raise Rs. 960 million. The funds raised through the IPO will be utilised to expand the business operations of RIL and its fully-owned subsidiary, Foodbuzz Ltd, a franchisee of the BreadTalk Group based in Singapore.

The IPO will open on 4 April 2017. The minimum subscription per application is 100 shares.

“We see significant demand for commercial office space in Colombo and have responded to this demand through the development of PARKLAND, a Grade ‘A’ commercial office complex. We hope to create value for investors through our commercial office space development and management initiatives,” RIL CEO Hiroshini Fernando said.

Commercial Bank of Ceylon Plc (COMB) and NDB Investment Bank (NDBIB) are acting as Lead Managers and Joint Managers to the Issue respectively.

Commercial Bank Investment Banking Unit Chief Manager Sushara Vidyasagara said: “We are pleased to be involved with the RIL IPO which in our view provides an investment opportunity in a company specialised in the development and management of commercial office space, at a reasonable valuation.”

NDB Investment Bank Corporate Advisory head Nilendra Weerasinghe, commented: “The RIL IPO is a rare opportunity for investors to participate in the growth story of the commercial office space segment given that direct investments in the sector require very high capital outlays.”