RIL Property Limited (RIL), a developer, owner and operator of commercial office space in Colombo received in-principle approval from the Colombo Stock Exchange for a listing of its ordinary voting shares through an Initial Public Offering (IPO), the company said in a press release.
RIL intends to offer 120 million ordinary voting shares to the public at Rs. 8 per share to raise Rs. 960 million. The funds raised through the IPO will be utilised to expand the business operations of RIL and its fully owned subsidiary, Foodbuzz (Pvt) Ltd, a franchisee of the BreadTalk Group based in Singapore.
The IPO will open on April 4. The minimum subscription per application is 100 shares. CEO of RIL, Hiroshini Fernando said, “We see significant demand for commercial office space in Colombo and have responded to this demand through the development of PARKLAND, a Grade ‘A’ commercial office complex. We hope to create value for investors through our commercial office space development and management initiatives.” Commercial Bank of Ceylon PLC (COMB) and NDB Investment Bank (NDBIB) are acting as Lead Managers and Joint Managers to the Issue, respectively.
Chief Manager of the Investment Banking Unit of COMB, Sushara Vidyasagara said, “We are pleased to be involved with the RIL IPO which in our view provides an investment opportunity in a company specialised in the development and management of commercial office space, at a reasonable valuation.”
Head, Corporate Advisory of NDBIB, Nilendra Weerasinghe said, “The RIL IPO is a rare opportunity for investors to participate in the growth story of the commercial office space segment given that direct investments in the sector require very high capital outlays.”