Cable Solutions Limited IPO to Offer 80,786,600 Ordinary Voting Shares
Sri Lanka’s only specialized integrated cable manufacturer and subsidiary of the ACL Group, Cable Solutions Limited (CSLK), has announced its plans for its Initial Public Offering (IPO) and subsequent listing on the Diri Savi Board of the Colombo Stock Exchange.
The IPO will comprise of a total of 80,786,600 ordinary voting shares of the company offered to the public, through a combination of an offer for subscription of 14,666,600 new ordinary voting shares and an offer for sale of 66,120,000 existing ordinary voting shares.
The sale of existing shares of the company, by few non-majority shareholders, will be subject to the offer for subscription being fully subscribed.
The offer price for CSLK shares is set at LKR 7.50 per share. The company aims to raise a total of LKR 109,999,500 from the public through a subscription offer for 14,666,600 shares.
The primary purpose of this fundraising effort is to allocate 81.8% of the proceeds towards capital expenditures for new machinery and production line upgrades, aimed at enhancing production efficiency.
18.2% of the funds will be utilized to enhance the working capital position. Through the offer for sale, a few existing shareholders plan to sell a combined total of 66,120,000 ordinary voting shares in CSLK.
Among these shareholders are Rosewood (Private) Limited, Associated Electrical Corporation Limited, and Perera & Sons (Bakers) (Private) Limited. Rosewood (Private) Limited and Perera & Sons (Bakers) (Private) Limited however will retain a significant number of shares despite the partial offer for sale.
The IPO will open on the 23rd of July 2024 and is managed by Asia Securities Advisors (Private) Limited.
Ahead of its upcoming IPO, the company will host a Virtual Investor Forum on 9th July 2024. This event is expected to provide investors, analysts, partners, media, and the public with a comprehensive understanding of the company and its future prospects.
Attendees will have the opportunity to engage directly with the company’s leadership team to seek clarifications and understand future growth avenues for the company.
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