LTL Holdings, one of Sri Lanka’s leading power conglomerates, announced plans for an Initial Public Offering (IPO) to raise Rs. 16 billion, marking the largest IPO in Sri Lankan history. The offering comes with a greenshoe option to extend the total to Rs. 20 billion.
CEO Nuhuman Marikkara stated that Rs. 13.5 billion of the IPO proceeds will be used to finance equity investments for the construction of a 350 MW combined cycle power plant in Kerawalapitiya (Sahasdhanavi Ltd), Sri Lanka’s second power plant to operate on liquefied natural gas (LNG). Additionally, Rs. 6 billion will be invested in a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project (Rividhanavi Pvt Ltd), which has already begun construction.
The IPO will offer 1,379,310,400 new ordinary voting shares at an issue price of Rs. 14.50 per share, providing a 22.3% stake in LTL to the public. The IPO opens on September 10, 2024, with applications for subscription now being accepted.
LTL Holdings operates across multiple sectors including power generation, engineering services, manufacturing of power distribution equipment, and heavy engineering. With 894 MW of existing power generation capacity in Sri Lanka, Bangladesh, and Nepal, and an additional 450 MW in secured pipeline projects, LTL is on track to become Sri Lanka’s first Independent Power Producer (IPP) with an installed capacity exceeding 1,000 MW.
The company is also focused on new ventures in clean energy and plans to expand into Africa. U. D. Jayawardane, Founder of LTL Holdings, emphasized that the power sector will remain stable due to ongoing demand, regardless of economic challenges.