Laugfs IPO opens Nov. 4

Laugfs Gas Ltd. will raise Rs. 2,505 million from an Initial Public Offering (IPO) to support the company's expansion plans and drive growth in the fast developing lubricant industry, said Chairman, Laugfs Holdings Ltd., W. K. H. Wegapitiya.

He said one of the major plans of the company is to enter the leisure sector of the country which is rapidly growing following the end of the conflict.

W. K. H. Wegapitiya

Laugfs has commenced constructing a 100-room luxury hotel in Chilaw with an investment of Rs. 500 million and also plans to build 72 serviced apartments at a company-owned prime property in Colombo.

"Laugfs has excelled in the lubricant business and today the company is a leading player in the industry. We are ready to takeover Shell Lanka and convert it into a more profitable venture", Wegapitiya said.

Laugfs will divest 22 percent of its stake through the IPO which offers 75 million voting shares of the company at the share price of Rs. 23 each and 52 million non voting shares priced at Rs. 15 each.

The IPO will open on November 4 and close on November 25 unless fully subscribed before that.

The minimum subscription has been set at 100 shares and there on in multiples of 100 shares of any class of shares applied.

Wegapitiya said the IPO will finance the company's LPG business to increase the storage and filling capacity, expand the distribution network and introduce a new range of LPG related products.

"Laugfs also hopes to use the money for future strategic plans such as the hotel sector", Wegapitiya said.

Laugfs manages two hotels in the South, Emerald Bay and Temple Tree.LF