Sri Lanka: New Transport Ministry Secretary, Dhammika Perera’s Vallibel One to launch Rs.4 billion with IPO
By J.A. Fernando in Colombo
Colombo, 14 January, (Asiantribune.com):
In the light of Sri Lanka’s Private Bus Owners leaded Gemunu Wijeratne calling off the massive bus strike, amidst Business Magnate Dhammika Perera’s latest appointment as Secretary to the Sri Lanka’s Ministry of Transport; Dhammika Perera owned Vallibel group has recently decide to raise Rs.4 billion in an Initial Public Offering (IPO) of Vallibel One Limited according to a latest stock market research report.
Sri Lanka’s leading stock brokering firm Capital Trust Securities in a research report stated that Vallibel One intends to raise Rs.4 billion by way of a private placement with the option of increasing up to Rs.4.5 billion in the event of over subscription and approximately a further Rs.1.43 billion by way of an initial public offer.
“Vallibel One Limited is a diversified holding company incorporated on 09th June 2010. Prior to the proposed private placement and initial public offering, 100% of the shares in issue are held by the business tycoon Dammika Perera and companies controlled by him. Through its subsidiary companies Vallibel One has made strategic investments in financial services, manufacturing and leisure industry” said Capital Trust in its report.
Accordingly, the company intends to raise funds through the issue to finance an equity investment of Rs.3 billion in a new hotel project developed under its full owned subsidiary Greener Water Limited.
“The total estimated cost of the hotel project is Rs.5 billion” said the report highlighting that Vallibel One has 51% stake of LB Finance PLC and strategic investment of 15% in Sampath Bank PLC with another 51% stake of Royal Ceramic PLC.
Greener Water Ltd has already invested Rs.266.73million in a 14 acre land located in Kochichikade, Negombo, Sri Lanka. The company intends to build a 382 room, luxurious five star hotel designed by WATG of Singapore, one of the world’s leading design consultants for the hospitality, leisure and entertainment industry. The construction of the hotel is estimated to take two years and commercial operations are planned to commence by end of 2013.The hotel will be developed as a BOI approved investment which will qualify for 8 years tax holiday, and a concessionary tax rate of 15% thereafter.
“The hotel will target the high end of the tourist segment and will be positioned as a five star hotel. At commencement gross Average Room Rate will be US $ 180 and will increase up to US $ 220 by the 5th year of operation.” said Capital Trust in its report.
Vallibel One’s capital structure outlines that as of 31 October 2010, Dhammika Perera owned 78.84% of Vallibel One amounting to 685.35 million shares with equal stakes of 10.58% owned by Vallibel Investments and Vallibel Leisure each amounting to 91.9 million shares of the company’s total equity of 869.25 million.
However after the IPO, Vallibel One will have 1.08 billion issued shares allowing public to hold 5.3% of the issued capital of the company added with 14.7% owned by qualified investors. Accordingly Perera’s stake would then dip to 63.08% with Vallibel Investments’ and Vallibel Leisure’s stakes at 8.46% each.
Shares are issued at Rs.25 per share while the share is said to have 13.65 times of Price to forward Earnings Ratio (PER). Vallibel one has Rs.50 billion in assets and Rs.24.7 billion in liabilities with a recorded net profit of Rs.1.2 billion for the first six months ended for the financial year 2011.
With interest in Casinos and Gaming, Dhammika Perera leaded Vallibel Group has turned around Sri Lanka’s Colombo Stock Exchange before the post war era during 2005 to 2009 while Perera controls significant stakes in number of Sri Lanka’s listed companies including blue chip Hayleys, Pan Asia Bank, Vallibel Power Erathna, Vallibel Finance, Royal Ceramics, LB Finance, and Amaya Leisure PLC.
By J.A. Fernando in Colombo
Colombo, 14 January, (Asiantribune.com):
In the light of Sri Lanka’s Private Bus Owners leaded Gemunu Wijeratne calling off the massive bus strike, amidst Business Magnate Dhammika Perera’s latest appointment as Secretary to the Sri Lanka’s Ministry of Transport; Dhammika Perera owned Vallibel group has recently decide to raise Rs.4 billion in an Initial Public Offering (IPO) of Vallibel One Limited according to a latest stock market research report.
Sri Lanka’s leading stock brokering firm Capital Trust Securities in a research report stated that Vallibel One intends to raise Rs.4 billion by way of a private placement with the option of increasing up to Rs.4.5 billion in the event of over subscription and approximately a further Rs.1.43 billion by way of an initial public offer.
“Vallibel One Limited is a diversified holding company incorporated on 09th June 2010. Prior to the proposed private placement and initial public offering, 100% of the shares in issue are held by the business tycoon Dammika Perera and companies controlled by him. Through its subsidiary companies Vallibel One has made strategic investments in financial services, manufacturing and leisure industry” said Capital Trust in its report.
Accordingly, the company intends to raise funds through the issue to finance an equity investment of Rs.3 billion in a new hotel project developed under its full owned subsidiary Greener Water Limited.
“The total estimated cost of the hotel project is Rs.5 billion” said the report highlighting that Vallibel One has 51% stake of LB Finance PLC and strategic investment of 15% in Sampath Bank PLC with another 51% stake of Royal Ceramic PLC.
Greener Water Ltd has already invested Rs.266.73million in a 14 acre land located in Kochichikade, Negombo, Sri Lanka. The company intends to build a 382 room, luxurious five star hotel designed by WATG of Singapore, one of the world’s leading design consultants for the hospitality, leisure and entertainment industry. The construction of the hotel is estimated to take two years and commercial operations are planned to commence by end of 2013.The hotel will be developed as a BOI approved investment which will qualify for 8 years tax holiday, and a concessionary tax rate of 15% thereafter.
“The hotel will target the high end of the tourist segment and will be positioned as a five star hotel. At commencement gross Average Room Rate will be US $ 180 and will increase up to US $ 220 by the 5th year of operation.” said Capital Trust in its report.
Vallibel One’s capital structure outlines that as of 31 October 2010, Dhammika Perera owned 78.84% of Vallibel One amounting to 685.35 million shares with equal stakes of 10.58% owned by Vallibel Investments and Vallibel Leisure each amounting to 91.9 million shares of the company’s total equity of 869.25 million.
However after the IPO, Vallibel One will have 1.08 billion issued shares allowing public to hold 5.3% of the issued capital of the company added with 14.7% owned by qualified investors. Accordingly Perera’s stake would then dip to 63.08% with Vallibel Investments’ and Vallibel Leisure’s stakes at 8.46% each.
Shares are issued at Rs.25 per share while the share is said to have 13.65 times of Price to forward Earnings Ratio (PER). Vallibel one has Rs.50 billion in assets and Rs.24.7 billion in liabilities with a recorded net profit of Rs.1.2 billion for the first six months ended for the financial year 2011.
With interest in Casinos and Gaming, Dhammika Perera leaded Vallibel Group has turned around Sri Lanka’s Colombo Stock Exchange before the post war era during 2005 to 2009 while Perera controls significant stakes in number of Sri Lanka’s listed companies including blue chip Hayleys, Pan Asia Bank, Vallibel Power Erathna, Vallibel Finance, Royal Ceramics, LB Finance, and Amaya Leisure PLC.
