Sri Lanka’s Luminex Ltd. initial public offering oversubscribed
The Morning: The Initial Public Offering (IPO) of Luminex Ltd., through an offer for a subscription of 31,250,000 shares at a price of Rs. 8 per share to raise Rs. 250 million has been fully subscribed and was closed on 2 May evening, the Colombo Stock Exchange (CSE) stated.
The amount raised from the IPO is to be utilised to enhance the working capital to scale up by consolidating local operations. Navara Capital Ltd. is the financial advisor and issue manager.
Luminex Ltd. is a company in telecom infrastructure engineering and is also involved in electrical, civil, and water projects.
The company has been in operation for well over 35 years and claims to have completed over 850 projects in the past 10 years. It is a leading telecom OSP (Outside Plant) construction partner for Sri Lanka Telecom and Dialog Axiata, and a construction contractor for public as well as private entities.
The company recorded an annual turnover of Rs. 2.55 billion for 2020/2021 and an after-tax profit of Rs. 295 million. In the first nine months of FY 2021/22, the company recorded a turnover of Rs. 2.48 billion and an after-tax profit of Rs. 453 million, maintaining a healthy growth rate.
OSL take:
The oversubscription of the Luminex IPO is indicative of the strength and growth of Sri Lanka’s private sector as well as the growing business potential of the country’s businesses. Despite facing economic challenges following the global pandemic, Sri Lanka’s economy has once again shown it’s resilience to external and internal challenges by getting back on the path to recovery. Sri Lanka is also looking at positioning itself as an emerging business destination in the South Asian region. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country have also helped boost Sri Lanka’s image as a growing business hub. With Sri Lanka’s economy on a growth path along with the country’s businesses, foreign businesses/investors could explore the growing opportunities in the country.
| Article Code : | VBS/AT/17062022/Z_3 |