LCB Finance IPO aimed at raising Rs. 500 m opens today

Tuesday, 26 October 2021 02:18 - - {{hitsCtrl.values.hits}}

Lanka Credit and Business Finance Ltd., (LCB Finance) initial public offering worth Rs. 500 million will have its official opening today.

The company is offering a 15.82% stake amounting to 125 million shares at Rs. 4 each. The IPO’s initial amount is 75 million shares aimed at raising Rs. 300 million and a further 50 million shares to raise Rs. 200 million in the event of an oversubscription of the original amount.

The price to book value is 1.26 and financial advisor and manager to the issue, NDB Investment Bank is promoting the IPO as 7.7% discount to the upper limit.

LCB Finance said it is listing on the CSE to meet the dual objectives of fulfilling its regulatory core capital requirement and financing. LCB Finance is a licensed finance company under the supervision and regulation of the Central Bank.

NDB Investment Bank also advised LCBL at the time of its entry to the NBFI space in 2018.

LCB has eight branches and its assets are worth Rs. 3.7 billion as at end of FY2021. Income is Rs. 461.4 million while pre-tax profit is Rs. 100 million. Total shareholders’ funds amount to Rs. 2.1 billion with 4.75% returns over equity. Moreover, LCB has a customer base of over 26,000. As at end-April 2021, the total capital funds reached Rs. 2,175 million, the Capital Adequacy Ratios was 51.78%, and the total Credit Portfolio reached Rs. 2.7 billion, whilst all branches were operating profitably.

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