ECONOMYNEXT - RIL Property Limited (RIL), a developer, owner and operator of commercial office space in the Sri Lankan capital Colombo, is to list its shares on the stock exchange at Rs8 a share.
A statement said RIL intends to offer 120 million ordinary voting shares in the Initial Public Offering (IPO) opening on April 4, 2017, to raise Rs960 million. The minimum subscription per application is 100 shares.
The funds will be used to expand RIL’s business operations and its fully owned subsidiary, Foodbuzz (Pvt) Ltd, a franchisee of BreadTalk Group based in Singapore.
“We see significant demand for commercial office space in Colombo and have responded to this demand through the development of Parkland, a Grade ‘A’ commercial office complex,” said Hiroshini Fernando, chief executive of RIL.
Parkland is a 22-floor office complex in the heart of Colombo.
Commercial Bank of Ceylon and NDB Investment Bank (NDBIB) are acting as Lead Managers and Joint Managers of the IPO.
“The RIL IPO, in our view, provides an investment opportunity in a company specialised in the development and management of commercial office spaces at a reasonable valuation,” said Sushara Vidyasagara, chief manager of the investment banking unit of Commercial Bank.
Nilendra Weerasinghe, head of corporate advisory of NDBIB, said the RIL IPO is an opportunity for investors to participate in growth of the commercial office space segment given that direct investments in the sector require very high capital outlays.
(COLOMBO, March 10, 2017)