September 04, Colombo (LNW): LTL Holdings Limited, a leading power sector conglomerate in Sri Lanka with over 40 years of experience, has announced its plans to launch the largest Initial Public Offering (IPO) in the history of the Colombo Stock Exchange (CSE).
The company plans to offer 1,379,310,400 new ordinary voting shares at LKR 14.50 per share, aiming to raise LKR 16 billion, with the possibility of increasing to LKR 20 billion through a greenshoe option. This IPO, opening on September 10, 2024, will make up to 22.3% of LTL’s shares available to the public.
The funds raised from the IPO will primarily support two major projects. LKR 13.5 billion will be used to partially finance a 350 MW combined cycle power plant in Kerawalapitiya, which will be Sri Lanka’s second LNG-powered facility.
Additionally, LKR 6 billion will be allocated to acquire a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project. These initiatives underscore LTL’s commitment to cleaner energy and mark a significant step in the company’s growth strategy.
LTL operates across various sectors, including power generation, engineering services, and manufacturing of power distribution equipment.
The company has 894 MW of existing power generation capacity across Sri Lanka, Bangladesh, and Nepal, with plans to surpass 1,000 MW, making it the largest Independent Power Producer (IPP) listed on the CSE.
LTL also holds a dominant position in transformer manufacturing and galvanizing, with a strong export presence in over 30 countries, particularly in South Asia and Africa.
LTL’s future plans include expanding its power generation projects, enhancing manufacturing facilities abroad, and exploring opportunities in LNG infrastructure.
The company’s current shareholders include the Ceylon Electricity Board (CEB), West Coast Power (Pvt) Ltd, Teckpro Investment Limited, and Peradev Limited. LTL’s Board of Directors comprises experts from various fields, contributing to its robust governance.
Financially, LTL has demonstrated strong performance, with consolidated revenue of Rs. 59.8 billion and a profit after tax of Rs. 5.8 billion for the financial year ending March 31, 2024.
Seventy percent of the company’s revenue is linked to foreign currency, highlighting its international reach.
The company’s total assets and equity stood at Rs. 133.6 billion and Rs. 74.4 billion, respectively, as of March 2024. With a 5-year average profit after tax margin of 35% and a return on equity of 27%, LTL is well-positioned to benefit from emerging energy trends both in Sri Lanka and globally.
The IPO is managed by NDB Investment Bank Limited and CT CLSA Capital (Private) Limited, with F J & G de Saram serving as legal advisors, SSP Corporate Services (Private) Limited as registrars, and Hatton National Bank PLC and Sampath Bank PLC as the bankers for the issue.
