Laugfs Gas Ltd is interested in managing Shell Gas, which the government has bought from its original Dutch owner and will offer its expertise in managing this entity to the state, according to Laugfs Chairman W.K.H. Wegapitiya.
“We are extremely interested in managing it for the state,” he told the Business Times on the sidelines of the Initial Public Offering (IPO) launch on Wednesday. He stressed on the numerology of 20.10.2010 (last Wednesday) saying that it’s a good omen to be launching on such a day.
He said the proceeds of the Rs 2.5 billion IPO will be utilized for business expansion (with Rs.505 million), expansion of the existing 2,500 metric tonnes storage and filling capacity of Laugfs Gas (with Rs. 425 million), expanding of the distribution network with Rs 40 million, etc.
“We will be adding some six main distributors and 335 dealers to the existing distribution network. We’ll also introduce new LP gas products,” he said, adding that the company plans to retire some Rs 850 million debt as well. He said that Laugfs has had discussions with some prospective partners in the energy sector in India, Pakistan and Bangladesh.
“We’re trying to acquire some regional LPG (Liquid Petroleum Gas) operators,” he said.
He said Laugfs has grown into some 18 firms in diversified sectors within the last 15 years since it started and the management feels that ‘now’ is the time to go public. “With the current economic boom, the political stability and the tapering of the global recession it’s time to go public.”
He said the company, which has two hotel properties in Induruwa is bullish on the tourism sector and will start construction on a 150-room resort hotel in Chilaw. “We will set up a hotel in the Southern coastal belt and is also looking to acquire some hotels in the South as well,” he said, adding that Laugfs is also studying the East for similar projects.
The company’s IPO issuing 75 million ordinary voting shares at Rs. 23 each and 52 million non-voting shares at Rs. 15 each is now up for subscription whilst the official opening is November 4. |
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