Wealth Trust Securities woos investors for Rs. 500.8 m IPO

From left: Wealth Trust Securities Independent Non-Executive Director Timothy Speldewinde, Non-Independent Non-Executive Director Anarkali Moonesinghe, Deputy CEO Priyanthi Abeyesekere, Chairman and Non-Independent Non-Executive Director Senaka Weerasooria, Managing Director and CEO Romesh Gomez, Non-Independent Non-Executive Director Tarusha Weerasooria, Independent Non-Executive Director Shanti Gnanapragasam, and Asia Securities Advisors Vice President Tivanka Perera – Pix by Lasantha Kumara 

Wealth Trust Securities Ltd., (WTS) one of Sri Lanka’s leading non-bank Primary Dealers, yesterday formally announced its Rs. 500.8 million-worth Initial Public Offering (IPO) which is up for subscription now whilst the official opening is on 17 December.

The IPO involves issuance of 5.84% stake or 71.548 million shares at Rs. 7 each.

During the media launch, the company’s Board and senior management outlined how the IPO is designed to strengthen WTS’s core capital position, enhancing resilience against unexpected interest rate volatility and improving its ability to manage market risks associated with primary dealer operations.

The company reiterated that the capital infusion will be used in the ordinary course of business, primarily to expand its trading portfolio of Government securities as favourable opportunities arise.

Chairman Senaka Weerasooria  assured prospective new shareholders the IPO and the company going forward offers an opportunity to participate in the next stage of the company’s growth journey and maximise returns. He said “have absolute confidence and trust,” in the company and its professional management. 

The media was told yesterday that WTS with conservative trading approach has delivered strong returns, averaging an ROE of 31% over the past 12 years. With forward rates expected to decrease further, WTS is well positioned to sustain profitability through disciplined balance sheet management and continued focus on capitalising on market opportunities and optimising returns.

WTS has also delivered consistently superior Net Interest Margins (NIMs), outperforming peers through funding optimisation. Over the past five years, WTS has maintained leading NIMs1 among peers reflecting disciplined balance sheet management and effective funding cost optimisation strategies. The funding cost optimisations have been delivered because of its highly efficient deal team and operations teams who are able to source and process funding at optimal costs.

Incorporated in February 2010, WTS is a Primary Dealer Company authorised by the Central Bank of Sri Lanka (CBSL) and licensed by the Securities and Exchange Commission (SEC) as a stockbroker and stock dealer for debt.

WTS is one of only 5 non-banking primary dealers in Sri Lanka. As a primary dealer, WTS functions as an intermediary in the Government securities market, participating in T-Bill and T-Bond auctions, trading Government securities in the primary and secondary markets, trading portfolios and corporate debt and carrying out repo and reverse repo transactions. 

The company’s main shareholders consist of Finco Holdings Ltd., SAFE Holdings (Pvt) Ltd, Iconic Trust Ltd. and GENESIIS Software Ltd., owning more than 50% of the company.

WTS has strong capital buffers reflecting prudent capital management, ensuring flexibility and readiness for increases in regulatory and capital requirements. As of 30 September 2025, WTS maintains a core capital of Rs. 6.3 billion, significantly above the current regulatory requirement of Rs. 2.5 billion and comfortably exceeding the anticipated increase to Rs. 5 billion by 2027. The capital buffer will further enhance post-IPO, with proceeds directed to bolster core capital, reinforcing resilience and readiness for future regulatory changes. 

Following the targeted FY26 dividend pay-out, WTS said it will continue to maintain a robust capital buffer well above the minimum core capital requirement of Rs. 4 billion effective from 01 January 2026, underscoring its strong financial position. WTS said its A- (Positive outlook) credit rating from Lanka Rating Agency, indicates the company’s stability and prudent management.

The IPO funds will strengthen WTS current Pre-IPO core capital of Rs. 6.3 billion resulting in a post-IPO core capital of Rs. 6.8 billion. This will enable WTS to further expand its investment portfolio and deliver stronger returns to shareholders. 

While WTS already meets the core capital requirements stipulated for the future as well, the IPO funds will further strengthen its capital buffer and provide an added cushion against any interest rate shocks.

Managers to the issue, Asia Securities said the IPO Offer Price provides an 18% upside to the Rs. 8.28 valuation derived from the Justified P/BV valuation (Primary Valuation Methodology).

WTS said it has delivered sustained profits across multiple interest rate cycles, with only one exception in FY22 when the entire primary dealer industry was impacted negatively, during which WTS successfully minimised its losses. Managing Director and CEO Romesh Gomez said WTS’s growth is driven by deep client relationships, insight-led decision making, technological integration and a performance-oriented team culture.

Revenue in FY25 was Rs. 4.6 billion down from Rs. 13.2 billion in the previous year. Profit after tax amounted to Rs. 1.2 billion as against Rs. 4.9 billion in FY24. Assets amounted to Rs. 23 billion whilst average annual transaction volume is Rs. 913.4 billion.

The senior management team with over 100 years of collective industry expertise drives WTS’s operational excellence. It includes Managing Director/CEO Romesh Gomez, Deputy CEO Priyanthi Abeyesekere, Trading and Research Development Head and Assistant General Manager Gayan Karunaratne, General Manager – Finance and Planning / Business Processing Ajith Athukoralage, and Senior Manager – Compliance and Risk Aruni Fernando.

WTS’ Board of Directors comprises Chairman Senaka Weerasooria, Managing Director/CEO Romesh Gomez, Anarkali Moonesinghe, Tarusha Weerasooria, Shanti Gnanapragasam, and Timothy Speldewinde. 

- Pic by Lasantha Kumara