Sri Lanka’s LTL Holdings is set to raise up to Rs. 20 billion through an initial public offering (IPO), subject to regulatory approvals, in what could become the largest IPO in the history of the Colombo Stock Exchange (CSE). The company, an affiliate of the Ceylon Electricity Board, initially focused on manufacturing transformers but later expanded into independent power generation following a management buyout.
Chief Executive Nuhuman Marikkar stated that the firm plans to sell around 22% of its shares, aiming to raise Rs. 16 billion, with an additional Rs. 4 billion available through a green shoe option. The IPO is set to open on September 10, with shares priced at Rs. 14.50 each. The initial issue includes 1,103,448,300 ordinary shares, with an option to sell another 275,862,100 shares.
Of the funds raised, Rs. 14 billion will be allocated towards the equity component of a new 350 MW combined cycle power plant named Sahasdanavi, while Rs. 5.5 billion will fund a 100 MW renewable energy plant, developed in partnership with Windforce.
On Wednesday, the 220 MW gas turbine (open cycle) component of another 350 MW plant, Sobadanavi, was commissioned. The full plant, which will also include a steam turbine, is expected next year. The plant, built with Siemens technology, is capable of running on diesel and up to 30% green hydrogen if available.
LTL Holdings, through its subsidiary Lakdhanavi Ltd., owns 82% of the Sahasdanavi project and also holds the operations and maintenance contracts. The company also operates another combined cycle power plant in Kerawalapitiya, which runs on furnace oil, though the new facility is more efficient.