Expolanka IPO
Saturday, April 23rd, 2011 at
12:38 pm
Expolanka Holdings Limited – An IPO that not to be missed.
The summary of Expolanka IPO
- Number of Shares to be issued 172,000,000 shares
- Issue Price Rs 14.00 Per Share.
- Minimum Subscription 1000 shares.
- Issue opens on 12th May 2011 (However applications may be made forthwith) .
Expolanka has been in business since 1978. Current workforce is estimated to 2965 people. Their main businesses includes Transportation, International Trading, Manufacturing and Strategic investment. Expolanka is a pioneer exporter of fresh produce.
What they going to do with IPO money?
Total value of the Expolanka IPO is amounted to 2408 million rupees. Rs 908 million will be used to settle long term debt while 1000 million rupees will use to increase working capital of specific Group entities. They hope to use another 500 million rupees to expand the existing warehouse capacity to supplement the Group’s expansion into the local Transport and Logistics Sector . With the above usage of IPO funds the profitability of the company will increase in long run.
Is it Worth buying Expolanka Shares from IPO?
Yes it is. Expolanka is well diversified and matured company. Group made a profit of Rs 1,267,856,108.00 for the 9 months ended 31st December 2010. Earning Per Share for the nine months amounted to Rs 0.711 and if annualized it will be Rs 0.95 per share based on existing issued number of shares. At issue price Rs 14.00 PER will be 14.74 times compared to Market PE of 26.55 times. So Expo Lanka IPO can be considered fairly valued.
Will Expo Lanka shares subject to heavy selling pressure on first day of trading?
There are 1,782,915,000 issued shares before IPO out of that 130,500,000 shares (6.68 percent) held by public so they may sell it. But I don’t think it will affect much on share price. According to the prospectus Expolanka didn’t issue shares after year 2005.
Please read the the Expolanka IPO Prospectus carefully before you make a decision to subscribe for the IPO.
To download Expolanka prospectus please copy and paste following web address to your web browser.
http://www.expolanka.com/pdf/expolanka_IPO.zip
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Download Expolanka IPO Application
superb tips and insights. This blog is quite interesting with adequate info.. Thanks for the posts . hats off to the admin.
hasnt anyone noticed that a private placement was done at six rupees while they do the IPO at 14 rupees. And the private placement investors have given no assurance saying they will not dispose of their shares.
I mean who would NOT want to give up a 100% return on their investment at the expense the retail investors!!!
It was stated in a weekend newspaper that nearly 300 million shares were issued in a private placement. Can anyone confirm whether it is true?
@ Anonymous,
There was no new share issue after year 2005 but in 2010 December few Expolanka directors sold part of their holdings at Rs 6/- per share.
Please see Expolanka Prospectus page 44-Table-11.1 and page 61-4.5 Materiel Contracts.
Another IPO to collect investors money. Thats all.
BASIS OF ALLOTMENT – EXPOLANKA HOLDINGS LTD
Expolanka is in lost do not invest