SEC cautions CSE over lapses in LTL IPO

Tuesday, 1 April 2025 03:44 - - {{hitsCtrl.values.hits}}

The Securities and Exchange Commission (SEC) has recently cautioned the Colombo Stock Exchange (CSE) over lapses in ensuring disclosures regarding pending litigation in relation to LTL Holdings in the latter’s initial public offering (IPO) prospectus.

The SEC also cited the lack of due diligence in obtaining relevant material information from the Joint Managers to the IPO.

LTL Holdings was on course to complete the biggest IPO worth Rs. 20 billion before the litigation.

In September last year, LTL launched its IPO primarily to support two major projects – Rs. 13.5 billion will be utilised to part finance the equity investment towards the construction of a 350 MW combined cycle power plant in Kerawalapitiya (Sahasdhanavi Ltd.), which would be the second power plant to operate on LNG in Sri Lanka, and Rs. 6 billion towards investing in a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project (Rividhanavi Ltd.).

The IPO was for 22.3% stake or 1,379,310,400 new ordinary voting shares at an issue price of Rs. 14.50 per share and aimed to raise Rs. 16 billion, with a green shoe option to increase the total to Rs. 20 billion. The joint managers and financial advisers to the issue are NDB Investment Bank Ltd.