Financial Times

Vallibel Power IPO next month
Vallibel Power Erathna Ltd, the hydro power firm held by entrepreneur Dhammika Perera’s Vallibel Holdings, will launch an initial public offering (IPO) on April 6 to raise money to pay off a loan of Rs.344 million raised for the project.

Stock market analysts said the company plans to list 20 percent of its share capital totalling 50 million shares. “They want to raise Rs.400 million and the money will be used to repay the debt of the firm worth Rs.344 million,” a stockbroker said. He said the balance funds will be ploughed into another one of their projects called Didul Private Limited.

He said that according to unconfirmed reports the share will be priced around Rs.7 to Rs.8 with the company focussing on institutional investors. “They will be initially tapping large institutional investors,” he said.

The company wanted to go public quite some time ago, but had to iron out issues with the regulator. Stock analysts said there were hiccups in the company’s application procedure which was going through the Securities and Exchange Commission and the Colombo Stock Exchange. The power generated by the 9.9 mega watt plant will be bought by the Ceylon Electricity Board.

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