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MyLand Developments to go public

26 Nov 2021

  • Announces IPO aims to raise Rs. 75 m
BY Imsha Iqbal Real estate developer Myland Developments Ltd. targets to Rs. 75 million through the upcoming initial public offering (IPO) by offering a 17.24% stake, the company announced yesterday (25) at Hotel Marino Beach. MDL anticipates to raise the aforesaid amount by offering 6,250,000 ordinary voting shares at a price of Rs. 12 per share. The IPO offer is to be managed by Atarah Capital Partners and be opened on 8 December. Accordingly, the company will be listed on the “Diri Savi Board” of the Colombo Stock Exchange (CSE). Atarah Capital Partners Managing Director (MD) Rohan Senewiratne, making the opening remarks at the event, said: “The commonly known method to raise capital is bank loans. All the companies, especially in the SME (small and medium-scale enterprises) sector and functioning outside the Colombo District, make capital in the form of loans.” However, Senewiratne stated that following the forum conducted by Atarah Capital Partners on investing at the CSE, Myland Developments MD Nalin Perera showed his enthusiasm in the company becoming a listed entity. “I am very confident that this IPO (of Myland Developments) will be a tremendous success for a variety of reasons – the company’s performance, the simple business model which, in fact, reduces the risk to the potential investors,” he said, emphasising that Myland Developments is perhaps the first company that is originating from the Gampaha District and getting listed on the CSE. Perera added that in 2020, when Sri Lanka first went into lockdown for two to three months, Myland Developments was able to secure the highest revenue in the district in the financial year 2021. With regard to the company’s performance, Myland Developments was able to record a revenue of Rs. 168 million, along with a profit after tax (PAT) of Rs. 26 million, during the financial year (FY) 2020/21. During the performance in the first half (1H) of FY 2021/22, the company recorded a revenue of Rs. 119 million, which is a 381% growth, while profit before tax (PBT) for the 1H was recorded at Rs. 38.6 million. The funds raised by the IPO is to be utilised for company expansion in terms of financing to acquire three lands for development purposes. According to Perera, the three projects are expected to be in Divulapitiya, Dompe, and Gampaha. Myland Developments was incorporated in March 2017 and currently has completed 23 land development projects by the end of September 2021. Myland Developments Chairman and Non-Executive Independent Director W.D. Premachandra, Executive Director Tharanganee Dissanayake, and Non-Executive Independent Director Ajith Alahakoon were also present at the event.

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