New Year opening for HVA Foods IPO

Wednesday, 15 December 2010 00:34 - - {{hitsCtrl.values.hits}}

By Marianne David

Seeking to raise Rs. 318 million, HVA Foods Lanka Ltd. is gearing up to list on the Colombo Stock Exchange (CSE) in the New Year.

HVA’s Initial Public Offering (IPO) will be announced on 3 January and will open on 12 January.

Plans are in the pipeline to sell 30% or 19.9 million shares of the company at Rs. 16 in order to raise the funds, which would be utilised to reduce the bank gearing, expand its production facility and upgrade its iced tea plant.

Speaking to Daily FT, HVA Group Chairman Rohan Fernando said that company was gearing up for its next stage of development and therefore needed to invest capital in order to build the brand and expand its market share.

“The best way to raise capital is through the equity market. Although this has been a family company or a long time, I have always wanted it to be listed at some stage and I believe this is the right time, especially since there is hype and people who are willing to invest,” he asserted.

Noting that tea has always had the highest demand in terms of growth and consumption, even during the recession, he emphasised that there was a good market for tea, due to which the company has expanded into tea-based products as well.

“I am very excited and positive about the listing, especially since HVA will be the first international tea brand to be listed on the stock exchange,” Fernando added.

HVA’s value-added tea products are exported to over 35 countries in the global market and the company pioneered the development of ready-to-drink iced tea in the Sri Lankan market.