East West subsidiary Weligama Hotel goes for Rs. 1.75 b pre-IPO private placement

To part finance the construction of Marriott Weligama Bay Resort & Spa, Weligama Hotel Properties Ltd. yesterday announced plans to raise Rs. 1.75 billion equity capital by a private placement to be followed by an IPO.

The company plans to issue 195 million new ordinary shares at Rs. 9 each and the issue is to be open next month, according to Bank of Ceylon, the managers to the private placement.

Subsequent to the private placement, East West Properties Plc will hold 56.66% of the issued capital of Weligama Hotel Properties Ltd.