Two Ceylinco Group firms - Finance and Guarantee and Ceylinco Investments Realty - are planning to go public by next year, according to sources close to Ceylinco.
They said that the two firms, struggling with cash flow problems triggered by the Golden Key debacle will go for an Initial Public Offering (IPO) in a bid to raise funds to restructure the firms’ accounts.
“The Merchant Bank is now adding the final touches to the IPO which is to come out in the early part of next year,” a source told the Business Times.
He said that The Finance Company’s restructuring will also be completed by this time. He added that this will include such steps as salary revisions, minimizing certain privileges provided to the senior executives, retrenching a certain percentage of contract and casual employees mainly to safeguard the existence of its permanent employees, adopting certain cost cut measures such as reducing office working hours and cutting down on air-conditioning, etc.