Mackwoods Energy IPO opens

Mackwoods Energy Ltd, a member of the Mackwoods Group launched the Initial Public Offering (IPO) of Rs 350m. The company through the IPO is offering 25 m ordinary voting shares to the public at Rs 14 each and will amount to a 25 percent stake in the company. The shares would be listed on the main board of the Colombo Stock Exchange.

The issue will open on March 22 and the minimum subscription amount would be Rs 7,000 or 500 shares .

The financial advisors and managers to the issue are NDB Investment Bank and the registrars are SSP Corporate Services Ltd.

Co-Chairman Mackwoods Group Nirmali Samaratunga said that recognising the power sector as an essential driver of socio economic development of the country the group strategically focused on this sector through the subsidiary Mackwoods Energy Ltd .

"Our aim is to harness available sources of energy particularly renewable energy and contribute to meet the growing energy need of the country through the provision of cost effective energy solutions

The company already provides thermal energy solutions and the IPO will enable the company to broadbase its present operations into power plants, marine power generators and marine engines and expand its activities in the renewable energy sector through several small hydro power projects as

well as other non conventional renewable energy projects in wind and solar energy.

The proceeds of the IPO will be used to finance the working capital requirements of the core business of providing thermal power solutions as well as to finance the diversification into small hydro projects through construction rehabilitation and upgrading of the small hydro projects and to finance the future expansion plans by way of new products and services.

SG