Biggest ever IPO by PLC opens today

Thursday, 3 November 2011 01:16 - - {{hitsCtrl.values.hits}}

The biggest ever IPO by a home grown entity People’s Leasing Ltd., (PLC) officially opens today aiming to raise Rs. 7 billion to boost its growing business in post-war Sri Lanka.

The IPO involves 390 million ordinary voting shares at Rs. 18 each. Top brokerages have already recommended the IPO as ‘Buy’. PLC is 100% locally owned and this facet makes its IPO biggest though the biggest ever Rs. 8 billion was however by Malaysia-controlled Dialog Telekom in 2005.

Upon subscription, the new shares of PLC will amount to 25% of the Issued and Paid up Ordinary Shares of the Company subsequent to the issue. The primary objective of the issue is to obtain a listing for the Ordinary Voting Shares of PLCL on the Colombo Stock Exchange (CSE), complying with a regulatory requirement of the Monetary Board of the Central Bank of Sri Lanka.

PLCL is one of the fastest growing leasing companies in the country today and is reputed for the high standards of transparency and governance it maintains in its operations. This sound reputation has enabled it to command a clear market share of 20%, making it the undisputable market leader. The capital infusion through the IPO will further fuel PLCL’s growth trajectory of PLCL.

PLCL is a specialised leasing company in Sri Lanka, incorporated in 1995 as a fully-owned subsidiary of People’s Bank (PB), the second largest state owned bank in Sri Lanka, with the objective of providing leasing and related services to the customers of PB. Since then, PLCL has emerged as the market leader in the provision of leasing and hire purchase facilities with the strength and backing of PB, its wide network of branches and the expertise of PLCL’s dynamic management team.

The Company provides its financial services through a wide network comprising over 37 regional branches and over 121 window offices located within PB branches.