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Agarapathana announces IPO

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Top officials of Agarapathana Plantations at the IPO launch yesterday.
Picture by Wimal Karunatillaka

One of Sri Lanka’s leading plantation companies, and one focused on innovation and growth, Agarapathana Plantations Limited yesterday officially announced its Initial Public Offering of Ordinary Voting Shares.

Accordingly, 83,070,111 or 16.61% of the ordinary voting shares of Agarapathana Plantations Limited will be offered to the public at an Issue Price of LKR 9 per share, with the Company seeking to raise a total of LKR 747,630,999 through public investment, and a listing on the Diri Savi Board of the Colombo Stock Exchange.

Discussing the IPO, which is being managed by Capital Alliance Partners Limited, Kowdu Mohideen, Executive Director at Agarapathana Plantations Limited said, “The funds raised by the issue will go towards factory modernization while also helping reduce borrowing costs.

The investor forum will provide an excellent opportunity for the media, and all interested potential stakeholders, and the public, to witness our value proposition first-hand, and make any clarifications.

We look forward to a lively and engaging event, and heavy interest in our Issue thereafter. We have also invested around Rs. 700 million towards various improvements of the company. We also hope to invest more in tourism.”

Executive Director, Agarapathana Plantations, S.S. Poholiyaddav said that over 90% proceeds from the IPO would be ploughed back towards the modernisation of tea factories which will enable them to increase production.

“In addition another 10% would be used towards debt serving of high interest loans.” Due to labour shortages and an aging worker population they will install new systems for mechanical tea plucking. “We hope to pioneer this segment and have around 30% machine plucking soon.”

He also said that these will help them to meet their projected annual production figures which fell short last year. (SS)

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