PLCL to issue 390m public voting shares

People’s Leasing Company Limited (PLCL), launched its Initial Public Offering (IPO). The Company will issue 390 m Ordinary Voting Shares at Rs 18 per share to raise Rs. 7,020,000,720.

The new shares will amount to 25 percent of the issued and paid ordinary shares of the Company subsequent to the issue. The IPO will open on November,3.

CEO PLCL D.P.Kumarage,said “People’s Leasing is one of the fastest growing leasing companies in the country, with a clear market share of over 20 percent making it the undisputable market leader.

The company has the potential to scale to greater heights in the next decade.

I am confident that this IPO will receive a good response from investors, both individual and institutional, enhancing the value for our shareholders, while strengthening our capacity to fund our ambitious growth plans in the future.”

The IPO is jointly managed by NDB Investment Bank Limited and Capital Alliance Holdings Limited.

The Company provides its financial services through a wide network comprising 37 regional branches and 121 window offices within PB branches.

Disbursements have grown at a Compounded Annual Growth Rate (CAGR) of 32% from Rs 13.8 b in FY 2006/07 to Rs41.8 b for FY 2010/11 – resulting in an impressive 35 percent CAGR in the total assets of PLCL.

PLCL has maintained its asset quality by recording a gross non-performing loan ratio of 1.2 percent as at March 31, in the backdrop of this exponential growth.

The primary objective of the issue is to obtain a listing for the Ordinary Voting Shares of PLCL on the Colombo Stock Exchange (CSE) to comply with the regulatory requirement of the Monetary Board of CBSL.

The Company is required to obtain a listing on the CSE during the calendar year 2011.

SG