Sri Lanka’s RIL Property Rs960mn IPO oversubscribed

Apr 04, 2017 (LBO) – An initial public offering of 120 million ordinary shares by RIL Property Limited to raise 960 million rupees was oversubscribed within hours on the opening day, a statement said.

Registrars to the issue, PW Corporate Secretarial, said in a stock exchange filing that the IPO was oversubscribed at an issue price of 8 rupees, would be closed at 4.30 pm Tuesday as per the prospectus.

The newly issued shares of the company are to be listed on the Colombo Stock Exchange and the basis of allotment is to be notified later.

The funds raised through the IPO will be utilised to expand the business operations of RIL and its fully owned subsidiary, Foodbuzz (Pvt) Ltd, a franchisee of the BreadTalk Group based in Singapore.

As per the prospectus, the funds will be initially utilised for the refurbishment of their READYWEAR building at a cost of 694.1 million rupees.

Ninety percent of the funds allocated for the refurbishment of READYWEAR building would be utilised by June 2018 and the balance would be held as a retention payment to the contractors to be released by June 2019.

265.9 million rupees is to be used for the expansion of BreadTalk outlets.

Incorporated in 2009, RIL is an owner, developer and manager of Grade ‘A’ commercial office space in select core markets in Colombo.

The company focuses on offering multi-faceted real estate solutions including facilities management, leasing, land acquisition, construction management services, consulting and strategic investment.