Lucky Lanka IPO crosses Rs. 300 m mark

Friday, 11 July 2014 01:17 - - {{hitsCtrl.values.hits}}

Demand for non-voting shares as voting shares lag

The Initial Public Offering of Lucky Lanka Milk Processing Company has crossed the Rs. 300 million mark with high demand for non-voting shares but poor response for voting stock. The IPO is for 38.0 million ordinary voting shares at Rs. 6 per share (Rs. 228 million) and 24 million ordinary non-voting shares at Rs. 3 per share (Rs. 72 million). As of close of business on 9 July, the voting shares offer had raised only Rs. 91.3 million worth of shares from 1,090 applications. However the non-voting had drawn Rs. 211.3 million worth of shares via 1,500 applications. The IPO officially opened on 7 July. The shares will be listed on the Diri Savi Board of the Colombo Stock Exchange. Out of the proceeds, Rs. 200 million will settle high cost borrowings, and Rs. 75 million will fund the expansion of the existing production plant with new cold room complex including an ammonia refrigeration system, extension to the existing UHT milk processing building and new machinery including conveyer systems and pigging systems. The remaining Rs. 25 million will be utilised for new projects such as ‘Gedarata Kiri’ milk bar outlets and school canteens.

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