Lucky Lanka to raise Rs 300m through IPO

Lucky Lanka Milk Processing Company Ltd will raise Rs 300 million through an Initial Public Offering tomorrow.

The company will offer 38,000,000 ordinary voting shares at Rs 6 per share and 24,000,000 ordinary non-voting shares at Rs 3 per share.

The shares will be listed on the Diri Savi Board of the Colombo Stock Exchange. Corporate Advisory and Capital Market division of Merchant Bank of Sri Lanka PLC are the investment bankers to the issue while the Bank of Ceylon are the Bankers to the issue.

Rs 200 million of the proceeds will be used to settle borrowings, which will boost net profits. While Rs 75 million will fund the expansion of the production plant with a cold room complex including an ammonia refrigeration system, extension to the UHT milk processing building and new machinery including conveyer and pigging systems. The remaining Rs 25 million will be used for new projects such as Gedarata Kiri, Milk Bar Outlet and School Canteen.

Lucky Lanka was launched in 1991 as a domestic business with the excess milk of household cows.