By Duruthu Edirimuni Chandrasekera

The Galle Face Hotel and Pelwatte Dairy will be publicly listed in less than two months, according to informed sources, while a hint of this happened at a news conference on Monday. “A company in the leisure sector and another in the dairy sector will be raising Rs. 500 million each in less than two months,” Janaka Ratnayake, Chairman Merchant Bank of Sri Lanka (MBSL) told the Business Times on the sidelines of a press conference to announce the Raigam Wayamba’s Initial Public Offering (IPO) allotment. (MBSL was the managers to this issue).

Galle Face Hotel

He did not name the two firms, but the Business Times had earlier reported that both these companies intent to go public and also got it re-confirmed after the press conference from independent sources.

Mr. Ratnayake also said that Sri Lankan Airlines Catering has just concluded a Rs. 2 billion private placement and that this too was slightly over subscribed. According to the sources, Odel, the clothes retailer also had a private placement ahead of its PO while finance firm Mercantile Investment is also gearing to go public.

Raigam Wayamba Salterns recorded the highest oversubscription rate (20 times oversubscribed) in the last decade at its IPO executed last month. Declaring the basis of share allotment, it was announced that the applicants up to 5000 shares would be allocated the full amount and applicants above 5000 shares, would be given 5000 shares plus 2.12% of the balance number of shares applied.

“The company sees strong prospects from the future earnings potential from its Salterns. The plans on new Salterns and development of Hambantota Salterns are considered to earn greater cash in the future from the current investments infused. Further, company’s operational costs are to remain low as the nature based ingredients to be converted as turnover during the harvesting seasons.

As such the low priced share with greater future earnings potential attracted many investors with large investments for the IPO,” A.M.A. Carder, Deputy Director Corporate Advisory and MBSL said.