HNB Investment Bank powers Alpha Fire Services’ journey from historic CSE listing to sale of controlling interest

Friday, 6 June 2025 00:04 - - {{hitsCtrl.values.hits}}

Senior Assistant Vice President – Corporate Finance Sonali Selvaratnam

Vice President – Sales Warana Sumanasena

HNB Investment Bank yesterday recounted its facilitation of Alpha Fire Services’ (AFS) journey from historic listing three years ago to the sale of controlling interests this week.

HNB Investment Bank, acted as the Manager, Financial Advisor, and Sponsor for the Introductory Listing of Alpha Fire Services PLC in May 2022. This marked the first Empower Board listing facilitated by HNB Investment Bank. At the time of listing, AFS was valued at Rs. 32.3 million, based on a forward P/E multiple of 5.4x and a P/BV multiple of 0.83x, with only three shareholders and no public float.

In March 2023, AFS successfully carried out a Rights Issue amounting to Rs. 51 million, once again managed by HNB Investment Bank, for the purpose of debt settlement and working capital enhancement. The issue was oversubscribed, signalling strong investor confidence. Following this and the company’s exceptional operational performance, market capitalisation rose to Rs. 180 million, with a Net Asset Value (NAV) of Rs. 129 million. Public shareholding increased to 4.8%, represented by 34 public shareholders.

In December 2023, AFS implemented a subdivision of shares at a 5-for-1 ratio when the market price per share had risen to Rs. 37.00. This move aimed to enhance share accessibility and broaden investor participation. Following the subdivision, public shareholding continued to rise, further solidifying AFS’s presence on the Empower Board.

As at 31 March, the market capitalisation of the company stood at Rs. 334 million, with a NAV of Rs. 184 million and a public shareholding of 24.74%, represented by 436 public shareholders. The company’s NAV has grown from Rs. 35 million to Rs. 184 million (CAGR of 129%) over a span of three years, while its market capitalisation increased from Rs. 32 million to Rs. 334 million (CAGR of 223%) over the same period. As at today, the company’s market capitalisation exceeds Rs. 500 million.

On 2 June, HNB Stockbrokers, once again played a pivotal role in steering a landmark transition in the company’s ownership structure. A total of 22.15 million shares, representing a 58% stake in Alpha Fire PLC, was sold to new buyers at a price of Rs. 10 per share.

This transaction marked a transformative milestone for Alpha Fire Services PLC, paving the way for a new era of strategic direction and broader market engagement. HNB Investment Bank’s continued leadership in navigating the entity through its listing, capital raising, share restructuring and major ownership transition reinforces its expertise and commitment to strengthening Sri Lanka’s capital markets.

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