LVL Energy Fund Limited, a leading Sri Lankan energy company and a subsidiary of Lanka ventures announced the launch of Rs 1.2 billion Initial Public Offering (IPO) yesterday (04), in Colombo.
LVL Energy Fund which has thermal and renewable energy projects in Sri Lanka, Bangladesh and Nepal, will sell 120 million shares at Rs. 10 each. And this will be the largest IPO to be launched in Sri Lanka since 2015. The issue will open on December 14.
The proposed IPO will enable the company to strengthen its position at the forefront of Sri Lanka’s growing energy industry.
Commenting on the Company’s IPO, Sumith Arangala - CEO, LVL Energy Fund Limited, noted that of the Rs. 1.2 billion, 60% of the proceeds of the IPO, which amounts to Rs. 720 million will be utilized for three hydro-power projects, Rs. 255 million in two hydro-power plants aggregating to 3.9 MW in Sri Lanka and the balance Rs. 465 million in a 10 MW hydro-power plant in Nepal.
“The remaining proceeds of the IPO, amounting to Rs. 480 million, will be utilized for settlement of debt which will improve the company’s borrowing capacity to finance more projects that are in the pipeline.”
The projects in the pipeline include two 10 MW wind power projects in the Jaffna Peninsula and one 100 MW thermal power project in Bangladesh.
The company is currently looking at potential investment opportunities in the solar power segment and in addition to its presence in Sri Lanka, Bangladesh and Nepal, the company is eyeing investment opportunities in East Africa as well.
With a diverse portfolio of energy projects spanning across Sri Lanka, Bangladesh and Nepal, the LVL Energy Fund will be the island’s only listed entity that possesses investments in thermal energy, as well as two key renewable energy sources - hydro and wind energy.
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