Dec 05, 2017

LEF set for biggest IPO in SL since 2015

LVL Energy Fund Limited (LEF), a leading Sri Lankan energy company and a subsidiary of Lanka ventures announced the launch of Rs 1.2 billion Initial Public Offering (IPO) yesterday (04), in Colombo.

LVL Energy Fund which has thermal and renewable energy projects in Sri Lanka, Bangladesh and Nepal, will sell 120 million shares at Rs. 10 each.

The company says that this will be the largest IPO to be launched in Sri Lanka since 2015. The issue will open on December 14.

The proposed IPO will enable the company to strengthen its position at the forefront of Sri Lanka’s growing energy industry.

Commenting on the Company’s IPO, Sumith Arangala - CEO, LVL Energy Fund Limited, noted that of the Rs. 1.2 billion, 60% of the proceeds of the IPO, which amounts to Rs. 720 million will be utilized for three hydro-power projects, Rs. 255 million in two hydro-power plants aggregating to 3.9 MW in Sri Lanka and the balance Rs. 465 million in a 10 MW hydro-power plant in Nepal.

“The remaining proceeds of the IPO, amounting to Rs. 480 million, will be utilized for settlement of debt which will improve the company’s borrowing capacity to finance more projects that are in the pipeline.”