Asia Asset Finance to go for Rs. 425 m IPO

Friday, 4 November 2011 02:58 - - {{hitsCtrl.values.hits}}

By Dinali Goonewardene

Asian Asset Finance will be offering 120 million shares to raise Rs.425.4 million in an Initial Public Offering due to open on 28 November.

The IPO will be priced at Rs. 2.50 per share with the option to sell a further 50 million shares. “The funds will be used to expand the core operations of the company,” Director/CEO Rajiv Gunawardena told the Daily FT. He added that the company had no borrowings. The company has an asset base of Rs. 2 billion and profits grew 200% to Rs. 80 million in financial year 2011.

Company officials when asked said they thought it was a conducive time to go for an IPO and mentioned that their IPO of Rs. 425 million was of manageable size to market.

A fully-owned subsidiary of the Asia Capital Group, Asia Asset Finance Ltd. is a licensed deposit-taking institution registered with the Central Bank of Sri Lanka. Its main focus lies in public deposits, finance leasing services, hire purchase and asset-backed financing for both corporates and individuals.