Rs. 838 million IPO:

Alumex to set up powder coating plant

Alumex Limited, a subsidiary of the Hayleys Group plans to go for a Rs. 838 million Initial Public Offering (IPO) to set up a powder coating plant and be eligible for the tax benefit offered by the Government for entities obtaining a listing on the CSE before March 31, 2014.

Listing on the Diri Savi Board of the Colombo Stock Exchange, Alumex would offer 59.9 million ordinary voting shares to the public comprising an Offer for Subscription tranche of 17.9 million shares and an Offer for Sale tranche of 42 million shares, at Rs. 14 each. The IPO will open on March 6 and close on March 25 unless oversubscribed before the closing date.

The minimum subscription has been set at 100 shares (Rs. 1,400).

NDB Investment Bank are the Financial Advisers and Managers to the Offer while P W Corporate Secretariat are the Registrars to the Offer.

The Alumex Group, a manufacturer of aluminium extrusions since 1988 and the market leader in Sri Lanka for over a decade, is a subsidiary of Hayleys PLC, a diversified multinational group with multifaceted manufacturing operations and abilities and products marketed in over 80 countries across the globe. The company’s focus on continuous improvement, ongoing infrastructure development and growth in the retail sector has established Alumex as a dominant player in the Sri Lankan aluminium industry.

The company has also entered into licensing agreements with globally renowned proprietary system manufacturers of aluminium extrusions and accessories to manufacture high-end aluminium products.

Managing Director, Alumex Limited, Rohan Peris said, “Alumex is well positioned to achieve a tremendous growth with countless development activities in the pipeline for Sri Lanka and substantial growth in the construction sector.”

Chief Executive Officer, NDB Investment Bank, Darshan Perera said, “The Alumex IPO offers an exceptional investment opportunity for potential investors to join the market leader in aluminium extrusions. We are confident that the IPO will be successful despite the challenging market conditions.”

Alumex has experienced a significant increase in demand for powder coated profiles in the recent past and at present operates at almost 100% of its capacity.

The company plans to acquire and operate a new powder coating plant within the first quarter of financial year 2014-2015, which would double the company’s powder coating capacity of 1,800 MT per annum to cater to the increased demand. It also plans to invest in die manufacturing equipment to cater to the demand arising from powder coated profiles. Following the completion of the powder coating plant, the revenue from the powder coating segment would increase gradually over the years and thereby have a positive impact on the profitability of the company.