Access Engineering Limited (AEL), having launched its Rs. 500 million Initial Public Offering (IPO) on Thursday, will be getting into property development in and around Colombo, officials said.
Sumal Perera, Chairman AEL told a group of analysts that the company has identified land and will be eyeing property development backed by the stimulated growth in the construction sector. "Our profit is from organic growth and we will continue to do so," Mr. Perera said.
AEL, which is one of the country's leading construction enterprises, will offer investors a different investment option, according to Mr. Perera. The IPO is to partly finance the working capital requirements of a housing project to the value of Rs. 3 billion undertaken by the company on behalf of UDA. In June 2011, AEL completed a share issue of Rs. 4.5 billion by placing 180 million shares at an issue price of Rs. 25 each. This is an 18% stake of the company. The balance 2% will be issued at a share issue price of Rs. 25 per share.
He added that now the company is developing large and complex infrastructure development projects utilizing innovative and state-of-the-art technological solutions in all its construction projects.
To date the company has been involved in a diverse range of construction and infrastructure projects in varied sectors such as roads and highways, bridges and flyovers, water and waste management, harbours and marine work, dredging and reclamation, telecommunication, irrigation and land drainage, piling and environment and waste management.