Sri Lanka hydro power share offer oversubscribed

Oct 26, 2010 (LBO) – An initial public offer by Hydro Power Free Lanka to raise 350 million rupees to build three new plants has been oversubscribed, a stock exchange filing said. The IPO of 35 million shares at 10 rupees each will close Tuesday and the basis of allotment notified later, registrars to the issue SSP Corporate Services said in a statement.

Hydro Power Free Lanka wants to build three new plants. It now has two power plants which sell power to the state-run Ceylon Electricity Board.

A new 0.83 MW plant is to be built in Thebuwana and another 0.94 MW plant in Stellenberg for 150 million rupees each for which agreements has been finalized, company officials have said.

It also plans a larger plant in Halgran Oya for 3.0 MW which can be expanded by another 0.60 MW with agreement with the CEB to be finalized in November.

Construction of the hydro power plants is expected to take 12 to 14 months.