Gas Grin

Oct 05, 2010 (LBO) – Sri Lankan liquid petroleum gas supplier Laugfs Gas is seeking to raise 2.5 billion rupees in an initial public offer opening on November 04, 2010, a stock exchange filing said. Laugfs Gas will offer for subscription 75 million ordinary voting shares at 23 rupees a share, to raise 1,725 million rupees, and 52 million ordinary non-voting shares at 15 rupees each to raise 780 million rupees.

The IPO prospectus is to be delivered by October 14, 2010 with the offer opening for subscription on November 04, 2010.

State-owned Merchant Bank of Sri Lanka is managing the issue with brokers Capital Alliance and Asha Phillip Securities being joint placement agents.

Laugfs Gas has said it was planning an IPO to raise funds for expansion given the opportunities offered in post-war Sri Lanka.

The island’s 30-yar ethnic war ended in May 2009, leading to a tourism boom and accelerating economic growth.

The Colombo stock market is also on a bull run, hitting record highs in recent weeks and becoming the world’s best performing bourse on October 01, with the main index and market capitalisation having doubled in the last 12 months.