JXG to mark its footprint in Africa, East Asia and Bangladesh
JXG, the parent company of the Janashakthi Group, is bullish on expansions across diversified financial services while marking its footprint across other countries.
An Initial Public Offering (IPO) aiming to raise Rs. 5 billion by offering a 21.74 per cent stake was announced by the company earlier this week, to realise these plans.
“We are looking at seven countries in Africa – mainly Commonwealth countries because they are a good fit in terms of culture as well as legal systems. We want to go into finance, insurance etc in these countries,” Managing Director and Group CEO Ramesh Schaffter told The Sunday Times Business on the sidelines of a media conference to announce the IPO amounting to 500 million ordinary shares at Rs. 10 each. In Kenya, the company is looking at getting into investment banking, he said. JXG is also having discussions with companies in Vietnam, the Philippines, and Bangladesh. Mr. Schaffter said that the company is looking at venturing into these countries due to the demographics and size. “In Bangladesh, too, we are looking at getting into Life insurance and investment banking.”
He said the idea is to get to two countries within the next year and five countries in the next five years.
JXG Deputy CEO and First Capital Managing Director Dilshan Wirasekara told the Sunday Times Business that there are two jurisdictions for mergers and acquisitions that the company is discussing in Africa that JXG wants to get into. “We are also in conversation with potential parties to get into joint ventures,” he said.
The company has set aside Rs. 0.5 billion from this IPO for regional and overseas expansion.
An independent valuation by Deloitte Sri Lanka has set the per-share value at Rs. 15.92, indicating a 37.18 per cent discount for the IPO price. Mr. Wirasekera added that there is a 55 per cent potential upside in this share. Commenting on the current global crisis, he said that the global crisis is not long-lasting, and also the valuations in the business have not changed. “Crisis can also be turned into an opportunity.”
Around Rs. 3.5 billion is earmarked for expanding and diversifying financial services in sectors such as General Insurance, Microfinance, and Non-Bank Financial Institutions (NBFI). Additionally, Rs. 1 billion will be used to retire debt and enhance financial flexibility.
The IPO is set to open on April 9, 2026, with First Capital Advisory Services (Pvt) Ltd serving as the Manager and Financial Advisor. Group Chairman Chandana De Silva highlighted the IPO as a historic milestone for JXG, aimed at strengthening the balance sheet and enhancing transparency and governance.
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