Dec 02, 2010 (LBO) – Singer Finance (Lanka), a subsidiary of the Sri Lankan unit of the Singer multinational, plans to raise 400 million rupees by offering 26.66 million shares at 15 rupees each, officials said. The Colombo stock market has been on a bull run this year, hitting record highs, although prices have fallen a little in recent days.
Singer Finance made a net profit of 54 million rupees in the financial year ended March 31, 2010.
In the five months to August 2010, it had a net profit of 49 million rupees, according to the IPO prospectus.
After the IPO the number of shares issued will rise to 106 million from 80 million.
Shantha Wijeweera, chief executive of Singer Finance, said the IPO funds will be used to fund business activity like leasing, hire purchase, and financing of consumer goods, to buy products mainly made by Singer group.
The funds will also help the firm comply with the central bank’s mandatory requirement that all finance companies should be listed before June 1, 2015.
The firm intends to make use of Singer group’s 345 outlets throughout the island to promote the IPO.
“We’re not much in the western province (where Colombo is located). Branches are