Fuel Vouchers

Lanka IOC is opting for a book building process to raise up to Rs. 2.4 bn through a public offering to issue 1.33 mn shares, its CEO said. Lanka IOC is opting for a book building process to raise up to Rs. 2.4 bn through a public offering to issue 1.33 mn shares, its CEO said. A first in Sri Lanka, the book building process carries a price band of between Rs. 25 to Rs. 30 per share. Employees and dealers will also get a small slice.

“Investors get a chance to pick up shares at a price they are comfortable with, so long as it is within the band,” M Nageswaran told Lanka Business Online on Wednesday.

The issue for a 25 percent slice, opens mid November, and is likely to be listed on the Colombo Stock Exchange’s main board.

It would be the second IPO on the buoyant Colombo bourse this year, which is up 44 percent todate.

With 175 fuel sheds under its arm, Lanka IOC annually sells 54,000 kilolitres of petro-products, and wants to use the money to set up a lube blending plant in Tricomalee and raise its market share from 28 percent to 50 percent by end 2006.

The 15,000 MT blending plant, is a US$ 800,000 investment and w