Finance Offer

Feb 05, 2010 (LBO) - Sri Lanka's Vallibel Finance, a unit of Vallibel group of entrepreneur Dhammika Perera, said it is selling down a 25 percent stake in an initial public offering on the Colombo Stock Exchange's main board to raise 114.4 million rupees. "The funds will be used for new leasing, hire purchase and auto finance," managing director Jayantha Rangamuwa said.

The issue is opening on March 31, and prospectus would be available from March 22.

The firm has 15 million shares.

It is now 99.47 percent owned by Vallibel Holdings.

The firms will sell 5.2 million shares at 22 rupees bringing the total up to 20.

2 million shares after the issue. Vallibel Holding's share will go down to 75 percent.

According to interim accounts for the 9-month ending December 2009 after tax profits were 30.3 million rupees, Rangamuwa said.

Pre-tax profits were 66.9 million rupees.

In the 9-months to December the firm's interest income rose 16 percent to 298 million rupees interest expenses went up at a slower 9 percent to 181 million rupees allowing net interest income to expand at a faster 29.9 percent to 170 million.

The gross loan book is 1,320 million and non-performing loans 52 million rupees which is a ratio of 3.

62 percent, compared t