A top real-estate developer and the leader in the mid-market residential condo segment, Prime Lands Residencies Ltd plans a Rs 1.95 billion Initial Public Offering (IPO) in the Colombo Stock Exchange (CSE) in April.
Prime Lands Residencies Ltd which is a 100% owned subsidiary of Prime Lands (Pvt) Ltd plans to issue 100,000,000 ordinary voting shares with an Option to issue a further 87,500,000 at Rs 10.40 per share, constituting 11.76% (up to a maximum of 20%) stake in the firm.
For the financial year ended on 31st of March this year, the company posted record revenue of Rs 7.94 billion, bringing earnings of Rs 974.70 million to its parent Prime Lands (Pvt) Ltd.
Over 40 apartment projects have been initiated by the Company so far in Colombo, Main cities, and suburbs, of which, 35 projects have been fully completed and handed over to residents. The remaining five projects are in the pipeline to be launched in 2021.
The Company’s revenue and earnings are projected to double by 2025.
The company expects low cost financing and increased borrowing capacity due to reductions in policy interest rates and proposal to increase the retirement age to 62 years to boost the demand for residential units in Sri Lanka.
B. Premalal and H. K. S. R. Perera servers as Co-Chairpersons of the firm.
Acuity Partners (Pvt) Ltd has been appointed as the Manager of the planned issuance.
Prime Lands is a well-respected brand name in Sri Lanka and Prime Group is the first and only Sri Lankan real estate group to secure an issuer rating of (SL)A- (pronounced as SL A-) by ICRA Lanka.