People’s Leasing Company Ltd (PLCL) is a subsidiary of State owned People’s Bank (PB). People’s Leasing Company was incorporated in 1995 as a fully owned subsidiary  of People’s Bank , the second largest state owned bank  in Sri Lanka, with the objective of providing leasing and  related services to the customers of PB.

PLCL is planing to offer Three Hundred and Ninety Million  and Forty (390,000,040) Ordinary Voting Shares at Rs. 18/-  per Share to the public.

Summary of PLCL IPO

Number of shares to be issued      390,000,040.
Issue Price                                      Rs 18.00 per share.
Issue Opening Date                        3rd November 2011.
Total Amount to be raised              Rs. 7,020,000,720.00.
Minimum Subscription                   1000 shares.
Registrars to the Issue                    S S P Corporate Services (Private) Limited

Bankers to the Issue
Sampath Bank PLC
People’s Bank
National Development Bank PLC
Nations Trust Bank PLC

PLCL IPO will be Sri Lanka’s largest IPO after Dialog IPO in year 2005. NDB Investment Bank and Capital Alliance Holdings Limited are the joint financial advisors and managers to the offer.

Future growth prospects for Leasing Industry in Sri Lanka is promising. There are several reasons for it.

1. There is a untapped market in North and East provinces of the country.
2. Increased vehicle purchases due to import tax reduction.
3. Growth of the Economy.

PLCL bears a long term rating of ‘A (lka) Stable’ from Fitch Ratings Lanka Limited, signifying its strong  credit profile and excellent track record of performance. Company made a profit of 2.6 billion rupees (2.07 per share) for the year ended 31st March 2011 and 1.73 billion rupees for the three months ended 30th June 2011.

Is it worth subscribing for People’s Leasing  IPO?

Without doubt it is worth. PLCL IPO is the most reasonably priced IPO among recent IPOs. It is huge IPO with large quantity of shares but it doesn’t matter if it is having reasonable Earning Per Share and future growth potential. Based on 31st March 2011 EPS and issue price its Price Earnings Ratio is 8.69 which is significantly discounted compared to current CSE Market Price Earnings Ratio (17.17).

Download People’s Leasing  IPO Prospectus
http://www.cse.lk/270808/pdf/5_10_2011_Peoples_Pros.pdf

Application Form
http://www.cse.lk/270808/pdf/5_10_2011_Peoples_App.pdf

Please read the Prospectus carefully prior to making an  investment decision.

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Trade Finance & Investments Limited (TFIL) is a small sized but profitable finance company commenced its operation in 1978 and licensed by the Central Bank of Sri Lanka. The principal lines of business in which the Company engages in include Finance Leasing,  Hire  Purchase,  Security  Loans,  Personal  Loans  and  acceptance  of  Fixed  Deposits  from  the Public. 

TFIL IPO Summary.

Number of shares offered    Six Million (6,000,000)
Issue Price                            Rs 20.00
Minimum Subscription         1000 shares
Issue Opening Date              28th September 2011
Number of shares provisionally reserved for the Individual Retail category 2,400,000  

Managers to the Issue   
Capital Alliance Holdings Limited 
Tel :  +9411 2317777  

Bankers to the Issue
Commercial Bank of Ceylon PLC 
Tel : +9411 2486000/4486000/7486000/5486000

Objectives of the  TFIL IPO

The main objective of TFIL IPO is to comply with the regulatory requirement set out by the Monetary 
Board  of  the  Central  Bank  of  Sri Lanka  to obtain a listing on the CSE.

IPO proceeds (Rs 120 Million) will be used to expand the current business activities of the company.

Subdivision of Shares

The Shareholders of the Company at its meeting held on 29th April 2011 resolved to sub divide
each existing share into ten (10) shares based on the shareholding as at 29th April 2011, thus
increasing the number of shares of the Company from 5,080,040 to 50,800,400.

Is it worth subscribing TFIL IPO?

My opinion is yes it is worth. TIFL has made a profit of  Rs 63,555,452.00 for the year ended 31st March 2011. Earnings Per Share after sub division amounted to Rs 1.25. Therefore at issue price its Price Earnings Ratio is 16 times compared to current Market PE of 19x.

There was no Private Placement prior to IPO other than share transactions disclosed in TFIL IPO Prospectus Page Number 22. 

5,080,040 shares of TFIL sold by Cooray Family to Mr. Toshiaki Tanaka for Rs 121,505,376.00 (Approximately Rs 23.92 per share) in July this year.

The risk of selling pressure below IPO price on first day of trading is very limited for  TFIL IPO subscribers.

Please read the TFIL IPO Prospectus carefully before you make any investment decision.

Download TFIL  Prospectus
http://www.cse.lk/270808/pdf/15_09_2011_TFIL_Pros.pdf

Download TFIL Application Form
http://www.cse.lk/270808/pdf/15_09_2011_TFIL_App.pdf

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CIFL

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Textured Jersey Lanka

Textured Jersey Lanka  Ltd manufactures and supplies a variety of designs and specifications of weft knitted  fabrics exclusively to garment manufacturers worldwide. The Company works closely with apparel  brand owners to design fabric needs that meet individualised order particulars. Many of these orders  require highly customised, complex design and production specifications. The garment manufacturer  customers in turn convert the knitted fabrics into finished garments for sale to the apparel brand  owners.  Textured Jersey Lanka  Ltd is a joint venture between Pacific Textiles Holdings Limited  and Brandix Lanka Limited .

Summary of Textured Jersey  IPO

• Issue Price        Rs 15.00 per share.
• Quantity            80 million shares.
• Minimum Subscription 100 shares.
• Issue opening date    7th July 2011.

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Browns Investments Group Structure

• Property & Construction
• Plantation & Agricultur
• Hotel & Leisure
• Export Industries & Manufacture
• Power Generation
• Portfolio Investments

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Mr. Dhammika Perera

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Softlogic  Holdings – A company grew up with aggressive acquisitions. 

The company invite public to subscribe 139 million shares at Rs 29.00 per share. Softlogic’s chairman  told Reuters the IPO, Sri Lanka’s largest since 2005, will be used to retire the firm’s short-term debt. Subscription list opens on 9th June 2011 and will be closed on 29th June.

Summary of Softlogic  IPO

Number of Shares to be Issued 139,000,000 ordinary shares
Issue Price Rs. 29/- (Rupees Twenty Nine) per share
Amount to be Raised Rs. 4,031,000,000/- (Rupees Four Billion and Thirty One million)
Minimum Subscription 500 shares (i.e. Rs. 14,500/-)

Applications in excess of 500 shares should be in multiples of 100  shares. The minimum subscription of 500 shares will be allotted to all  successful applicants of the Company’s Initial Public Offering.

The History of  Softlogic

Majority of people know Softlogic as the Nokia dealer for Sri Lanka but now it is a large holding company with wide interest in fast growing sectors of Sri Lankan economy.  Within last few months they have acquired Sri Lanka’s largest listed hospital group Asiri Hospital Holdings.
Currently  Softlogic has diversified in to Automobile, Finance, Health Care, Information Technology, Leisure and Retail Trading of consumer electronics. 

Is it worth subscribing  Softlogic IPO at Rs 29?

As usual Softlogic too not an under priced IPO. Current Market Price Earnings ratio of Colombo Stock Exchange is around 26. Softlogic Price Earnings Ratio based on Post IPO number of shares and annualized Earnings per share with available accounts is around 27 times. So I can say this is a slightly over priced IPO based on historical earnings.

Other thing that investors should consider is Softlogic issued 14 million shares through a private placement at Rs 72.00 per share in March / April 2010 and there was a sub division of shares 1 in to 10 in Feb 2011. This makes cost per share for those investors at private placement just Rs 7.20.

With these facts it is highly unlikely to have a sharp gain on first day of trading Softlogic shares. If you are a long term investor with holding power to hold two to three years, this IPO will give you good return in future. 

You can download Softlogic Prospectus and Application form by visiting http://www.softlogic.lk/IPO.html

Always read the prospectus carefully before you make any investment decision.

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• Number of Shares to be issued 172,000,000 shares
• Issue Price Rs 14.00 Per Share.
• Minimum Subscription 1000 shares.
• Issue opens on 12^th May 2011 (However applications may be made forthwith) .

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Free Lanka Capital Holdings (FLCH), one of the country’s largest tea and rubber producers and owning a large land base in Colombo, is offering 300 million of its shares at Rs 5.00 per share to the public to raise Rs 1.5 billion.
Free Lanka Capital Holdings, a group that has business interest in plantations, hydro power, leisure and property development sectors has completed a private placement for 700 million rupees

Who are the main shareholders of Free Lanka Capital Holdings?
Browns Investments.
Perpetual Capital.

The Assets of Free Lanka Capital Holdings.

57,000 Acres of land across the country.
9,200 Acres of land in the district of Colombo.
19,000 Acres of tea .
13,000 Acres of rubber .
3,500 Acres of commercial timber.

The company that has interests also in property development, leisure and hydro power generation and Hydro Power Free Lanka is an already listed in CSE. 3.2 Megawatt hydro power generated presently and 15 Megawatt hydro power in the pipe line. Free Lanka Capital hold controlling interest in both Maturata Plantations & Pussellawa Plantations.

Established in 1992, the group is a 6 billion-rupee annual turnover entity with a 10.5 billion-rupee group net asset value. Free Lanka Capital Holding showed a Rs 975 Million group net profit for 9 months to end December 2010.

The summery of Free Lanka Capital Holdings IPO.

Issue Opening Date
17th March, 2011.

Total quantity offered.

Minimum subscription.
2000 shares and if applied more than 2000 should be in in multiples of 1000 shares.

Total issued number of shares after IPO.

Allotment.

The Board of Directors of FLCH intends to distribute 300 million shares between two investor categories namely Retail and Non Retail. For both categories reserved 150 million shares each. Investors applied up to 10,000 shares (including 10,000 shares) will be deemed as retail investors.

This is only a summary, please read the prospectus before you make any investment decision. You can download Free Lanka Capital Holdings IPO Prospectus and Application forms using below web address.

Prospectus
http://www.cse.lk/270808/pdf/FLC_Prospectus.pdf

Application form
http://www.cse.lk/270808/pdf/FLC_Application.pdf

As all recent IPOs, FLCH IPO too not undervalued. Companies always try to collect maximum amount when IPO market performs well. But with the current trend in Colombo Stock Exchange you will be able to make some money with relatively low risk.

Source – Free Lanka Capital Holdings Prospectus.

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IPO Summary.

NUMBER OF SHARES TO BE OFFERED
Offer for Subscription of 15,000,000 Ordinary Voting Shares at a price of LKR. 25.00 per share.

DATE OF OPENING OF THE SUBSCRIPTION LIST
24th February 2011.

FINANCIAL ADVISOR AND JOINT MANAGERS TO THE OFFER
NDB Investment Bank Limited

JOINT MANAGERS TO THE OFFER
Acuity Partners (Private) Limited

REGISTRARS TO THE OFFER
P W Corporate Secretarial (Pvt.) Limited

The History of Union Bank

Union Bank of Colombo commenced operations as the 8th indigenous bank in June 1995. Since then Union Bank has grown with many challenges. Now their branch network has expanded to 20 branches and more to come.

In August 2003, Union Bank was restructured and recapitalised by a Sampath Bank led consortium. The consortium, which comprises two Singapore based investment companies, namely Chinkara Capital and Caritano Venture Inc., also includes Sri Lanka ‘s Penguin Group, Union Apparels, AMW and Associated Electricals. The National Savings Bank too invested in this recapitalization process.

After restructuring in 2003 fresh capital worth of Rs 420 million was infused by  Middle Eastern investors Prince Faisal Al Faisal Bin Abdullah Al Saud, the grandson of King Faisal of Saudi Arabia and distinguished Investment Banker Mr. Alex Lovell and acquired 10 percent stake in the bank.

Main objectives of the Union Bank Initial Public Offer.

• Union Bank successfully completed a Right Issue and Private placement during the 2nd half of the year 2010.  Directors are confident of reaching the Central Bank’s capital targets in the future with this IPO. The primary objective of the Issue is to obtain a listing for the entire Ordinary Shares of UBC on the CSE to comply with the regulatory requirements of the Monetary Board of the CBSL as communicated by their letter dated September 03, 2010. Accordingly, the Bank is required to obtain a listing on the CSE by December 31, 2011. 
• The Issue will facilitate the listing of the entire Ordinary Shares on the Main Board of the CSE, subject to compliance with Rule 2.1.2 of the CSE Listing Rules. UBC has already complied with Rule 2.1.2(a) and Rule 2.1.2(b)of the CSE Listing Rules. With regard to the Rule 2.1.2(c), the Bank has already complied with the minimum public holding requirement of 25% and intends to comply with the requirement of a minimum number of 1,000 public shareholders holding not less than 100 Shares each subsequent to this Issue.
• The Bank expects to utilise the IPO proceeds before the end of the first half of the Financial Year 2011.In addition to the above, the IPO will enable UBC to broaden public ownership of the Bank and thus boost its brand image and visibility amongst the public.

An Overview of the Union Bank Stated Capital.

As at 29th December Union Bank’s total number of issued and fully paid shares was 333,345,763.

Top 10 shareholders.

1.      Vista Knowledge Pte Ltd 64,677,973 (19.40%)     
2.      Sampath Bank PLC 26,338,127 (7.90%)
3.      Associated Electrical Corporation Limited 24,684,652 (7.41%)
4.      Select Gain Limited 23,369,409 7.01
5.      Mr. Ajith Wijeyesekera 17,419,059 (5.23%)
6.      Mr. Alexis Indrajit Lovell 16,993,809 (5.10%)
7.      Caritano Venture Corporation 12,738,709 (3.82%)
8.      First Gulf Asia Holdings Limited 10,000,000 (3%)
9.      Rosewood (Private) Limited 9,543,698 (2.86%)   
10.      Others 112,580,327 (33.77%)

     Total 333,345,763 (100%)

Earnings of Union Bank.

For last three years Bank reported steady increase in their profit. Year 2007 Bank made a profit after tax of Rs 13.42 million and for the year 2008 it risen to 23.10 million rupees. In 2009 Union Bank profit after tax increased sharply to 62.14 million rupees.

According to the audited results for the nine months ended 30th September 2010, Bank has made Rs 109.07 as profit after tax. With this result Union Bank’s annualized earning per share has increased to Rs.0.63.

Is Union Bank IPO worth to subscribe?

Despite low earning per share and high Price Earning ratio on historical earnings Union Bank IPO is worth to subscribe. With the expected growth in Sri Lankan economy Banking sector will have to play major role in coming years.

You can download Union Bank IPO Application form and Prospectus using following web addresses.

Prospectus
http://www.unionb.com/UnionBankProspectus.pdf

Application Form
http://www.unionb.com/UnionBankShareApplicationForm.pdf

Please read the IPO prospectus before you decide to invest because stock investing involves substantial risk of loss and is not suitable for all investors.

Please comment your own opinion here regarding Union Bank of Colombo IPO.

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