Sri Lanka’s JAT to move for Rs. 2.23 billion IPO to boost company’s expansion overseas
Sri Lanka’s JAT Holdings, which is a premier finishing, living and furnishing business, has reportedly formally announced its Rs. 2.23 billion Initial Public Offering (IPO) scheduled for 20 July issuing 82.9 million voting shares at Rs. 27 each.
According to reports, cash positive JAT Holdings will utilize the capital to strengthen its expansion into South Asia and Africa, whilst the company has already established itself in Bangladesh as market leader in wood coatings and finishing products, transforming user experience in that market.
From funds raised via the IPO, around Rs. 500 million will be used to set up manufacturing facilities in Bangladesh, Rs. 300 million for similar facilities in Africa, a further Rs. 300 million will be deployed to develop a state-of-the-art research facility in Sri Lanka, whilst the remainder would be utilised to enhance the company’s White by JAT portfolio, local media reports have stated.
The IPO is managed by NDB Bank, who remarked the valuation points to immediate capital gains of 20%, with a price earnings ratio of ten times as per its projections for 2022 reports state.
Addressing a briefing on the JAT IPO, its Chairman, Dr. Sivakumar Selliah, has reportedly noted the company’s commitment to corporate governance, noting that despite JAT hitherto being a non-listed company, it had published Annual Reports for the past few years, which have bagged a number of awards.
He has stated that all statutory committees have been in operation within the company for a period of time, including an investment committee, headed by independent directors.
JAT Holdings Founder and Managing Director Aelian Gunawardene has reportedly said his company – which commences business in 1993 – had delivered a turnover of Rs. 1 billion by 2011, and then Rs. 9 billion by 2021, demonstrating its strength and dominant position in the market.
OSL take:
The expansion programme launched by Sri Lanka’s JAT Holdings is indicative of the growth and strength of the country’s private sector. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. The progressive economic policies of the government of Sri Lanka and the continuous improvement to the ease of doing business environment in the country have given a furtther boost to the private sector. Foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka as the island is fast emerging as a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country.
| Article Code : | VBS/AT/20210714/Z_1 |