LTL Holdings to raise Rs. 16 Bn via IPO
LTL Holdings, one of Sri Lanka’s leading power conglomerates unveiled their Initial Public Offering (IPO) to raise Rs. 16 billion yesterday making this Sri Lanka’s the largest IPO to take place on the CSE. It comes with a greenshoe option to increase the total to LKR 20 billion through the IPO.
LTL Holdings Limited, Sri Lanka’s fully integrated power sector conglomerate with a 40-year track record also announced plans to be listed on the Colombo Stock Exchange (CSE). CEO Nuhuman Marikkara said that they hope to utilize out of the IPO proceeds, Rs. 13.5 billion to part finance the equity investment towards the construction of a 350 MW combined cycle power plant in Kerawalapitiya (Sahasdhanavi Ltd). This would be the second power plant to operate on LNG
in Sri Lanka “In addition we plan to invest Rs. 6 billion in a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project (Rividhanavi (Pvt) Ltd) which has already commenced construction.
The IPO is an offer for subscription of up to 1,379,310,400 new ordinary voting shares at an issue price of Rs 14.50 per share via an initial issue of Rs 16 billion, offering a stake of up to 22.3% of LTL to the Public. The IPO opens on September 10, 2024, and applications for the subscription of shares are now accepted.
LTL operates across multiple sectors, including power generation, engineering services for power plants as an Engineering, Procurement and Construction and Operations and Maintenance, contractor, manufacturing of power distribution equipment, and heavy engineering. LTL is set to embark on new ventures in clean energy while reinforcing its position as a leading player in Sri Lanka’s energy sector.
With 894 MW of existing power generation capacity in Sri Lanka, Bangladesh and Nepal and over 450 MW in secured pipeline projects, LTL is on track to become the first Independent Power Producer (IPP) in Sri Lanka to have an installed capacity of over 1,000 MW, positioning the Company as the largest listed IPP on the CSE. He also outlined plans to invest in Africa. He said that the company’s investment in power sector generation has held Ceylon Electricity board to save around Rs. 20 billion annually.
Founder LTL Holdings, U. D. Jayawardane said that the power sector industry will never crash as the demand would exist forever. “Despite all the crisis and turmoil in Bangladesh we still get paid.”
The IPO is jointly managed by NDB Investment Bank and CT CLSA Capital Limited. F J & G de Saram is the Lawyers while SSP Corporate Services Limited is the Registrars to the Issue and Hatton National Bank PLC and Sampath Bank are acting as the Bankers to the Issue.
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