LTL Holdings Limited (LTL / the Company), Sri Lanka’s leading fully integrated power sector conglomerate with a 40-year track record, announced plans to launch an Initial Public Offering (IPO) and be listed on the Colombo Stock Exchange (CSE), making this the largest IPO to take place on the CSE.
The IPO is an offer for subscription of up to 1,379,310,400 new ordinary voting shares at an issue price of LKR 14.50 per share via an initial issue of LKR 16 billion, with a greenshoe option to increase the total to
LKR 20 billion through the IPO, offering a stake of up to 22.3% of LTL to the Public. The IPO opens on September 10, 2024, and applications for the subscription of shares are now accepted.
Out of the IPO proceeds, LKR 13.5 Bn will be utilized to part finance the equity investment towards the construction of a 350 MW combined cycle power plant in Kerawalapitiya (Sahasdhanavi Ltd), which would be the second power plant to operate on LNG in Sri Lanka and LKR 6.0 billion will be allocated towards investing in a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project (Rividhanavi (Pvt) Ltd).
LTL operates across multiple sectors, including power generation, engineering services for power plants as an EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) contractor, manufacturing of power distribution equipment, and heavy engineering. With a strong focus on cleaner energy investments, the IPO represents an important milestone in the company’s growth strategy. LTL is set to embark on new ventures in clean energy while reinforcing its position as a leading player in Sri Lanka’s energy sector.
With 894 MW of existing power generation capacity in Sri Lanka, Bangladesh and Nepal and over 450 MW in secured pipeline projects, LTL is on track to become the first Independent Power Producer (IPP) in Sri Lanka to have an installed capacity of over 1,000 MW, positioning the Company as the largest listed IPP on the CSE.
In addition, LTL boasts a significant market leadership position in transformer manufacturing and galvanizing operations, with a strong export footprint in over 30 countries including a well-established international presence in South Asia and Africa. LTL, through its Indian subsidiary company is also engaged in the manufacturing of switchgear products required by power utilities in the domestic Indian market and other Asian, Middle East and African countries.
The Company's future pipeline includes power generation projects, expansion of manufacturing facilities in overseas markets, and exploration of upstream opportunities in LNG infrastructure.
The Company's existing shareholders include the Ceylon Electricity Board (CEB), West Coast Power (Pvt) Ltd, Teckpro Investment Limited and Peradev Limited and LTL's Board of Directors features experienced members from diverse fields.
LTL’s operations are characterized by strong financial performance backed by significant technical expertise. LTL recorded Rs. 59.8 Bn Consolidated Revenue which translated to a Profit after Tax of Rs. 5.8 Bn for the latest financial year ended 31st March 2024, where 70% of revenue was foreign currency-linked. Total Group Assets and Total Group Equity of LTL stood at Rs. 133.6 Bn and Rs. 74.4 Bn, respectively as at 31st March 2024. LTL has achieved a 5-year average profit after tax margin (PAT margin) of 35% and 5-year average return on equity (ROE) of 27% during FY2020 to FY2024. The Company's financial performance is expected to further increase with the commissioning of the 350MW Sobadhanavi power plant in Kerewalapitiya. As a fully integrated player across the power sector value chain, LTL is well-positioned to capitalize on emerging energy trends in Sri Lanka and overseas.
The IPO is jointly managed by NDB Investment Bank Limited and CT CLSA Capital (Private) Limited. F J & G de Saram is the Lawyers to the Issue, SSP Corporate Services (Private) Limited is the Registrars to the Issue and Hatton National Bank PLC and Sampath Bank PLC are acting as the Bankers to the Issue.
For information and to invest in the IPO, visit www.ltl.lk/ipo/.