Asset Play

Nov 17, 2011 (LBO) – Asia Asset Finance Limited (AAFL), a Sri Lankan registered finance company that is part of the Asia Capital group, plans to go public with an initial public offer of 120 million shares at 2.50 rupees each. The issue opens on November 28, 2011 with the shares to be listed on the ‘Diri Savi’ second board of the Colombo stock exchange.

AAFL plans to raise 300 million rupees with the issue of 120 million shares which amounts to a 21 percent stake and has the option of issuing 50 million more shares, going up to a 27.8 percent stake, to raise a total of 425.4 million rupees.

Asia Asset Finance, formerly known as Finance and Land Sales, made a net profit of 79.7 million rupees for the year to March 31, 2011 compared with a loss of 84 million rupees the previous year.

Earnings per share were 30 cents against a loss of 1.58 rupees the year before.

Forty percent of the IPO is reserved for retail individual investors, 20 percent for non-retail investors, 10 percent for unit trusts, five percent for employees of Asia Capital and its subsidiaries, 10 percent for depositors of AAFL and 15 percent for shareholders of Asia Capital.

Mano Nanayakkara, managing director of AAFL and chairman