ODEL to go public

ODEL will set up outlets in the North and the East following a study done on the market in the regions, said CEO, ODEL, Otara Gunawardene at a press conference to announce the company’s IPO on Tuesday.

ODEL, the premium fashion retailer will raise Rs. 250 million with an offer of 16.7 million shares at Rs. 15 each. The public will be offered a 11.52 percent stake in equity.

The IPO will begin July 5.

“The money raised from the offer will be used to revamp and renovate outlets. ODEL is patronised mostly by locals who account for nearly 60 percent of the clientele” Gunawardene said.“ODEL is on an expansion drive.

Steps will be taken to set up more branches islandwide.ODEL’s primary aim is to be the most sought after retailer for quality products”, she said.

ODEL’s flagship store at Alexandra Place is a one-stop-shop for foreign clientele.

“Our stores will be refurbished to meet the highest customer satisfaction and entice more visitors”, Gunawardene said.

Director, CT Capital, Channa Amarathunga said the company has allocated Rs. 3 million shares for the small retail investors to ensure that they are not left out in the issue. ODEL which started business in 1989 with the first store on Dickmon’s Road currently operates 12 outlets with a workforce of 700 employees. A store is to be set up in Battaramulla next month.

The fashion retailer has set up four branches during the past six months in Colombo.

LF