ExpoLanka IPO:

Family business to go public

ExpoAviation, a subsidiary of ExpoLanka Holdings Ltd. will resume flights to Jaffna this year following a demand for air transportation said Group Director ExpoLanka Holdings' Ltd., Sattar Kassim at the launch of ExpoLanka Holdings IPO on Tuesday.

He said there is a demand for air transportation by local and foreign tourists due to the developments in the North.The company hopes to operate initially two flights a day, both ways and then increase flights according to demand.

ExpoAviation which commenced domestic flights in 2002 stopped operations to the North last year with the opening of the A-9 road.

CEO ExpoLanka Ltd., Hanif Yussof addressing the media. Pic:Rukmal Gamage

Road transportation to the North increased with the elimination of terrorism and more people keen to take a closer look at the conflict affected areas of the country.

"We operated three to four flights a day to Jaffna due to the demand but gradually the number of flights declined with the opening of the roads", Kassim said.

ExpoAviation was launched in 1997 to operate international cargo. Kassim said ExpoPavillion, a seven-bed room hotel, formerly a colonial vintage house, will be re-located to a one-acre property in Palali this year. "The new property is spacious and could accommodate more visitors. We hope to promote locations in the North and build tourism in the region," he said.

ExpoLanka Holdings hopes to raise Rs. 2.4 billion through a share issue of 172 million ordinary shares priced at Rs. 14. The IPO will be opened on May 12.

CEO, Expolanka Holdings, Hanif Yusoof said the company decided to go public not because of the boom in the stock market but to expand business and enable the public to be a part of a global company.

The company hopes to use the money from the share offer to enhance its working capital, expand warehouse capacity and reduce long-term debt.

ExpoLanka Holdings Ltd. is the holding company of ExpoLanka Group, a family owned business which commenced operations in 1978. The Group has a presence in over 11 countries and 38 cities with subsidiaries and joint ventures.

The company has diversified into transportation, international trade, importation, pharmaceutical, manufacturing, IT, BPO, travel, leisure and education.

"Our core business is transportation and over 60 percent of the income is generated from overseas ventures. The North is a huge market and we hope to explore all avenues to expand operations in the region", Yusoof said.

ExpoLanka has a strong presence in the Asian, Middle Eastern and Sub-Saharan regions.