Alumex Limited, Hayleys Group’s subsidiary, plans to start a Rs.838 million Initial Public Offering (IPO) to finance the monetary requirement for setting up a powder coating plant. It is also done to be eligible for tax benefits offered by Government for entities containing a listing on Colombo Stock Exchange prior to 31 March, 2014.
The IPO will begin on March 6, 2014 and ends at March 25, 2014 unless there is any oversubscription before the closing date. The minimum subscription will be at 100 shares or a total amount of Rs. 1,400.
Alumex appoints NDB Investment Bank as the Financial Advisors & Managers to the Offering. P W Corporate Secretarial is the Registrars to the Offering.
The Alumex Group, a subsidiary of Hayleys PLC, a diversified multinational Group is a leading aluminium extrusions manufacturer in Sri Lanka since 1988 .
The focus of the company was on continuous improvement, development of ongoing infrastructure and growth in the retail sector. All these have helped Alumex establish themselves as a dominant player in Sri Lankan aluminium industry. Alumex has entered into a licensing agreement with the globally renowned proprietary system aluminium extrusions and accessories manufacturers to manufacture high end products.
Rohan Peris, the Managing Director of Alumex Limited said during the press conference, " Whilst financing the capital requirement to set up a new powder coating plant to meet the increasing demand for powder coated profiles is one of the key objectives of this IPO, we will also be eligible for the tax benefit offered by the Government for entities obtaining a listing on the CSE."
Darshan Perera, the CEO of NDB Investment Bank, expressed his belief on the Alumex IPO, "The Alumex IPO offers an exceptional investment opportunity for potential investors to join hands with the market leader in aluminium extrusions in the country. We are confident that the IPO will be successful despite the challenging market conditions under which it is opening."
Alumex has seen a remarkable hike in demand for its powder coated profiles in the past few years and currently it operates at almost 100% of its existing capacity.
The company has a strategy to acquire another powder coating plant within the first quarter of FY 2014/2015, which is expected to bring up company's existing powder coating capacity of 1800MT annually so that it can cater to the rising demand.
It also hopes to invest in die manufacturing equipment to do full justice to the increasing demand for powder coated profiles.
