By Jithendra Antonio
One of the leading and most diversified family businesses of Sri Lanka, Expo Lanka Holdings (EXPO) yesterday announced its much awaited Initial Public Offering (IPO). The company intends to issue 172 million ordinary voting shares at Rs.14 per share, on May 12.
Chief Executive officer of Expolanka Holdings Hanif Yusoof said the IPO marks a significant milestone. “These are exciting times for Expolanka, and we expect to raise Rs.2.4 billion” Yusoof said adding that the company primarily intends to allocate IPO proceeds to enhance working capital, expand warehouse capacity and reduce long term debt.
Accordingly, nearly Rs.1 billion will be allotted to working capital enhancement, Rs.500 million will be allocated to Group’s expansion of existing warehouse and another Rs.908 million to reduce the company’s long term debt outstanding.
With a consolidated turnover of over Rs.25.82 billion for the 9 months period ending 31 December 2010, and 46 subsidiaries and joint venture companies in over 11 countries and 38 cities, the group has expanded its breadth and size within a relatively short space of operation since its inception.
Yusoof stressed that Expolanka group’s major revenue comes from its foreign subsidiaries that amounts to 60%, while the group’s freight forwarding subsidiaries are the major cash cows.
Meanwhile Yusoof also stressed that the two subsidiaries were disposed completely to focus more on growth-driven businesses.
“We realized that given the volatility of the aviation industry and constraints faced by the textile industries, those two subsidiaries cannot deliver much to our shareholders” Yusoof added. Prior to the IPO, Expolanka IPO had divested Expolanka Aviation and Denshun Industries, earning a capital gain of Rs.313 million.
Explaining about future company strategies Yusoof said that Expolanka plans to establish offices in the southern region to facilitate the increased business potential in cargo volumes derived from the Hambantota Port development project. He also outlined Expolanka’s plans to increase the production capacity for exports, strengthening the network for packaged Teas (T-Sips) both locally and internationally.
Incorporated in 2003, Expolanka Holdings Limited is the holding company of Expolanka Group that commenced in 1978, and the company has diversified interests in transportation, international trading, manufacturing and strategic investments sectors. The company’s financials outline that the company’s Earnings Per Share had increased from Rs. 2.15 to Rs. 2.77 in the first nine months of 2011.
source - www.dailymirror.lk
0 comments:
Post a Comment