Janashakthi to expand to the Middle East

Janashakthi Insurance Co Ltd (JICL) is eyeing the Middle Eastern market in a bid to attract migrant and other worker population there, according to a top official.

“We are planning to tap this market next year and talking to some parties there,” Prakash Schaffter, Managing Director JICL told The Sunday Times FT on the sidelines of the media conference to announce the opening of JICL’s Initial Public Offering (IPO ) on June 16.

He said that initially it will be the life business the company will be targeting . “We will start with a representative arrangement and in a short time will set up our physical presence,” Mr. Schaffter said, adding that they also have wide ranging plans for aggressive offshore market development in specific Asian countries.

JICL is issuing the first IPO in Sri Lanka in two years with 33 million Ordinary Shares at Rs. 12 each raising Rs.400 million as proceeds.

“Janashakthi will initially sell 16.5 million shares at Rs.12 each, with an option to double the offering,” he said, adding that the managers and registrars to the issue are the Merchant Bank.

He said that the application forms will be available at 600 locations across Sri Lanka through Janashakthi and Bank of Ceylon branches and stock brokers. JICL registered Rs. 525 million profit in 2007, which was the highest profit margin in the industry.

Mr. Schaffter said that the IPO envisages the broadbasing of JICL’s share ownership enabling the company to aggressively move forward to strengthen its balance sheet, invest money in market development and penetration, while gaining market share.