Financial Times

Vallibel Power to raise Rs 450m from IPO
By Duruthu Edirimuni
Vallibel Power, the hydro power firm held by entrepreneur Dhammika Perera’s Vallibel Holdings will launch an initial public offering (IPO) by the end of the month, in a bid to repay Rs.400 million in loans taken from Commercial Bank and DFCC.

Nimal Perera, Director, Vallibel Power told The Sunday Times FT that the company is planning to issue 66 million shares and raise Rs.450 million.
“The money will be essentially used to repay the loans, amounting to Rs.400 million and we are in the process of getting the regulators’ approval for the IPO,” he said, adding that the primary issue will be launched on October 25.
The loans were taken to fund four mini-hydropower projects.

Perera said the company is awaiting approval from the Securities and Exchange Commission and the Colombo Stock Exchange. “A one rupee share will be priced at Rs.6 and Rs.7 and the company is planning to announce a 2:1 bonus immediately after the issue,” Perera said, adding investors who buy the shares at Rs.7 will be eligible for the bonus.

Dhammika Perera, Chairman, Vallibel Holdings said the balance funds of the IPO will be utilised on the four mini-hydropower projects of the company, situated in Kuruwita, Ratnapura, Nawalapitiya and Kahawatte.

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