MHDL IPO opens on Jan 28

Millennium Housing Developers Limited (MHDL) will introduce an Initial Public offering (IPO) to raise Rs.192 million.

This is the first IPO for this year and the company will offer 16 million ordinary voting share at Rs. 6 per share with an option of a further 16 million shares.

The IPO will open on January 28 and will remain open for 14 working days.

The funds raised will be invested in new housing projects consisting of 180 housing units in Homagama, Ja-ela, Seeduwa, Wattala and Piliyandala this year and next year. The company has also identified the need for three more urban housing projects consisting of 150 housing units in the greater Colombo area to meet the immediate housing demand of the middle and upper middle class, the officials said.

The housing sector shows steady growth and indicates sustainable medium and long term growth in urban housing.

The banking sector has defined it as a positive growth industry. During the past three years loans to the private sector for housing has increased by 18 percent while the interest rates for housing loans is coming down creating higher demand for housing.

MHDL from its inception has constructed 2,500 housing units covering all income levels. The company maintains a steady growth in revenue and net asset position, officials said.

- GW