Business Times

Sri Lanka Asia Asset Finance to raise over Rs.425 mln thro’ IPO

Asia Asset Finance Limited (AAFL), a Sri Lankan registered finance company, a subsidiary of the Asia Capital group, is to go public with an IPO of 120 million shares at Rs 2.50 each. Mano Nanayakkara, managing director of AAFL and chairman of Asia Capital said he expects the company to grow fast given opportunities in the post-war economic recovery.

The issue opens on November 28, 2011 with the shares to be listed on the ‘Diri Savi’ second board of the Colombo stock exchange. AAFL plans to raise Rs. 300 million through the issue which amounts to a 21 % stake with the option of issuing 50 million more shares, going up to a 27.8 %, to raise a total of Rs. 425.4 million rupees, he said.

Director/CEO Rajiv Gunawardena told the Business Times that Asia Asset Finance, formerly known as Finance and Land Sales registered a net profit of 79.7 million rupees for the year to March 31, 2011 compared with a loss of 84 million rupees the previous year, he said. Earnings per share were 30 cents against a loss of 1.58 rupees the year before.

Some 90 % of funds raised through the IPO would be invested in core operations of the firm which includes leasing, hire purchase, corporate loans, three wheel, group personal loans, consumer financing, and pawning. The remaining 10 % would go towards branch expansion and product development. The firm plans to up its branch network from the current 10 to 19 by end of financial year 2012, mostly in the north and east regions, Mr. Gunawardena revealed.

New branches have been given a target of breaking even in the first three months and growing with a profit by 20 % a year, he added. The company has plans for securitisation starting in February 2012 to raise Rs 150 million in low cost funds using its hire purchase and leasing portfolio.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Cold war between Treasury, Central Bank
Arbitrary tender cancellation delays Sri Lanka’s crude oil importation
Overall budget analysis for listed firms good : Analysts
Inconsistencies in land take-over law
Most Sri Lankans say lives not impacted by budget-poll
Understanding Budgets
Comment - Bits and pieces budget, doublespeak
Coconut oil is good for you after all!
Sri Lanka Design Festival ends on successful note
Sri Lanka reaches750,000 tourists level this week
Women are better judges than men in assessing emotions
Good response to little Pradeep’s plea to become a banker
Highlights/analysis of the budget
Budget ignores workers in the productive economy : CFL
Budget proposal to reclaim 37, 000 hectares of plantations not sending right signals
No IMF pressure on the 2012 budget : Minister Amunugama
Govt. to tackle fiscal deficit without compromising public investment : PBJ
Provincial class budget, inward look
Fixed broadband not enough for SL, mobile needed : Etisalat CEO
Lucky Lanka Milk founder wins Entrepreneur of the Year award
Japanese Peace Envoy Akashi here for Southern expressway opening
Sri Lanka Asia Asset Finance to raise over Rs.425 mln thro’ IPO
Factors impacting oil prices
LOLC Factors launches Gold Cheque Financing for SMEs in the North
Entrust Securities, Sri Lanka’s first ever licensed Non Bank Primary Dealer, to start trading on Tuesday
Nestle eyeing new segments in SL
Allianz Lanka launches new ‘Medi Care’ product
Janak Hirdaramani – pioneer in the apparel industry
Lanka IOC Chairman on working visit to Colombo
SMB Leasing PLC moves to new office
Three-pronged approach in BT-RCB budget poll
UAE minister says Sri Lanka has a lot of potential
Worrying developments and threat to academic autonomy in Sri Lanka universities
State enterprises should not be privatised: Top global economist
Social impact bonds mooted to help thousands of entrepreneurs
20 % of world’s richest take large slice of global resources
Higher costs, lower margins for telcos in 2012: Fitch
Lanka Ventures looks to Bangladesh, East Africa for power generation
Focus on increasing export competitiveness
Ageing bank directors seek divine intervention to stay in office
Massacre of the rich and the innocents


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution